Michael Gentile of Group Eleven Resources Corp. (CVE:ZNG) Just Spent CA$753k On Shares

Group Eleven Resources Corp. (CVE:ZNG) shareholders (or potential shareholders) will be happy to see that insider Michael Gentile recently bought a whopping CA$753k worth of stock, at a price of CA$0.065. That purchase boosted their holding by 98%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

Check out our latest analysis for Group Eleven Resources

The Last 12 Months Of Insider Transactions At Group Eleven Resources

Notably, that recent purchase by Michael Gentile is the biggest insider purchase of Group Eleven Resources shares that we've seen in the last year. Even though the purchase was made at a significantly lower price than the recent price (CA$0.09), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Michael Gentile bought a total of 23.08m shares over the year at an average price of CA$0.064. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Group Eleven Resources insiders own 26% of the company, worth about CA$2.9m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Group Eleven Resources Insider Transactions Indicate?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives 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 Group Eleven Resources 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. For instance, we've identified 4 warning signs for Group Eleven Resources (3 don't sit too well with us) you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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