Co-Founder of Goldmoney Picks Up 2.2% More Stock

Potential Goldmoney Inc. (TSE:XAU) shareholders may wish to note that the Co-Founder, Roy Sebag, recently bought CA$510k worth of stock, paying CA$6.65 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 2.2%.

View our latest analysis for Goldmoney

The Last 12 Months Of Insider Transactions At Goldmoney

In fact, the recent purchase by Roy Sebag was the biggest purchase of Goldmoney shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of CA$7.00 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.

Goldmoney insiders may have bought shares in the last year, but they didn't sell any. Their average price was about CA$7.42. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap 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. We usually like to see fairly high levels of insider ownership. Insiders own 28% of Goldmoney shares, worth about CA$25m. 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 Goldmoney Insider Transactions Indicate?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. 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 Goldmoney insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Goldmoney is showing 2 warning signs in our investment analysis, and 1 of those is concerning...

Of course Goldmoney 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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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