Some Galantas Gold Corporation (CVE:GAL) shareholders may be a little concerned to see that the Director, Lawrence Roulston, recently sold a substantial CA$2.6m worth of stock at a price of CA$0.43 per share. That sale reduced their total holding by 14% which is hardly insignificant, but far from the worst we've seen.
Galantas Gold Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the insider, Luis Catril, for CA$38m worth of shares, at about CA$0.42 per share. That means that an insider was selling shares at around the current price of CA$0.40. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
Happily, we note that in the last year insiders paid CA$28m for 131.40m shares. But insiders sold 97.31m shares worth CA$41m. All up, insiders sold more shares in Galantas Gold than they bought, over the last year. They sold for an average price of about CA$0.42. We don't gain confidence from insider selling below the recent share price. Since insiders sell for many reasons, we wouldn't put too much weight on it. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
See our latest analysis for Galantas Gold
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Insider Ownership Of Galantas Gold
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. 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 Galantas Gold insiders own 26% of the company, worth about CA$86m. 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 Does This Data Suggest About Galantas Gold Insiders?
Insiders haven't bought Galantas Gold stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! 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. Be aware that Galantas Gold is showing 3 warning signs in our investment analysis, and 2 of those are a bit concerning...
But note: Galantas Gold may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.