Don't Ignore The Insider Selling In SolGold

We note that the SolGold Plc (LON:SOLG) Non-Executive Director, Nicholas Mather, recently sold UK£47k worth of stock for UK£0.11 per share. On the bright side, that's just a small sale and only reduced their holding by 1.3%.

See our latest analysis for SolGold

SolGold Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when CEO & Director Scott Caldwell bought UK£94k worth of shares at a price of UK£0.13 per share. That means that an insider was happy to buy shares at above the current price of UK£0.10. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Happily, we note that in the last year insiders paid UK£229k for 2.12m shares. On the other hand they divested 650.00k shares, for UK£69k. Overall, SolGold insiders were net buyers during the last year. Their average price was about UK£0.11. This is nice to see since it implies that insiders might see value around current prices. 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!

SolGold is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 1.9% of SolGold shares, worth about UK£5.8m, according to our data. But they may have an indirect interest through a corporate structure that we haven't picked up on. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At SolGold Tell Us?

Our data shows a little more insider selling than buying in the last three months. But the difference isn't enough to have us worried. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more SolGold stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing SolGold. Case in point: We've spotted 4 warning signs for SolGold you should be aware of, and 2 of them shouldn't be ignored.

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 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.