Insider Buying: The Unigold Inc. (CVE:UGD) Independent Director Just Bought 10% More Shares

By
Simply Wall St
Published
August 11, 2021
TSXV:UGD
Source: Shutterstock

Whilst it may not be a huge deal, we thought it was good to see that the Unigold Inc. (CVE:UGD) Independent Director, Normand Tremblay, recently bought CA$85k worth of stock, for CA$0.13 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 10%.

View our latest analysis for Unigold

The Last 12 Months Of Insider Transactions At Unigold

Over the last year, we can see that the biggest insider purchase was by insider Eric Sprott for CA$1.9m worth of shares, at about CA$0.55 per share. That means that even when the share price was higher than CA$0.12 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months insiders purchased 4.97m shares for CA$2.2m. But they sold 150.00k shares for CA$85k. Overall, Unigold insiders were net buyers during the last year. They paid about CA$0.44 on average. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
TSXV:UGD Insider Trading Volume August 12th 2021

Unigold is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Unigold

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Unigold insiders own about CA$3.7m worth of shares. That equates to 20% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Unigold Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Unigold insiders are well aligned, and that they may think the share price is too low. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 4 warning signs with Unigold and understanding these should be part of your investment process.

Of course Unigold may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

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