Bullish Golden Matrix Group Insiders Loaded Up On US$2.79m Of Stock

Over the last year, a good number of insiders have significantly increased their holdings in Golden Matrix Group, Inc. (NASDAQ:GMGI). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At Golden Matrix Group

The insider Aleksandar Milovanovic made the biggest insider purchase in the last 12 months. That single transaction was for US$555k worth of shares at a price of US$1.85 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$1.75). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. 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 US$2.8m for 1.44m shares. On the other hand they divested 17.50k shares, for US$35k. In the last twelve months there was more buying than selling by Golden Matrix Group insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Golden Matrix Group

Golden Matrix Group is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At Golden Matrix Group Have Bought Stock Recently

Over the last three months, we've seen significantly more insider buying, than insider selling, at Golden Matrix Group. Insiders spent US$801k on shares. But Independent Director Thomas McChesney sold shares worth US$35k. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Golden Matrix Group insiders own about US$206m worth of shares (which is 85% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Golden Matrix Group Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. 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. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Golden Matrix Group. That's what I like to see! 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. While conducting our analysis, we found that Golden Matrix Group has 1 warning sign and it would be unwise to ignore it.

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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.