Goldmoney Insiders Up CA$403k On CA$2.94m Investment

Insiders who purchased Goldmoney Inc. (TSE:XAU) shares in the past 12 months are unlikely to be deeply impacted by the stock's 15% decline over the past week. Even after accounting for the recent loss, the CA$2.94m worth of stock purchased by them is now worth CA$3.34m or in other words, their investment continues to give good returns.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Goldmoney

Goldmoney Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Co-Founder Roy Sebag bought CA$510k worth of shares at a price of CA$6.66 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$8.43. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months Goldmoney insiders were buying shares, but not selling. They paid about CA$7.41 on average. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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.

Does Goldmoney Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Goldmoney insiders own about CA$38m worth of shares. That equates to 31% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Goldmoney Tell Us?

It doesn't really mean much that no insider has traded Goldmoney shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Goldmoney insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 2 warning signs (1 is significant!) that you ought to be aware of before buying any shares in Goldmoney.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.