Quite a few insiders have dramatically grown their holdings in Goldsky Resources Corp. (CVE:GSKR) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Goldsky Resources
The CEO & Executive Director Russell Bradford made the biggest insider purchase in the last 12 months. That single transaction was for CA$1.5m worth of shares at a price of CA$3.20 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$2.55). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Over the last year, we can see that insiders have bought 767.51k shares worth CA$2.1m. On the other hand they divested 194.30k shares, for CA$649k. Overall, Goldsky Resources insiders were net buyers during the last year. The average buy price was around CA$2.68. 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. By clicking on the graph below, you can see the precise details of each insider transaction!
View our latest analysis for Goldsky Resources
Goldsky Resources 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.
Goldsky Resources Insiders Are Selling The Stock
There was substantially more insider selling, than buying, of Goldsky Resources shares over the last three months. We note Executive Director & MD of Nordics Noora Ahola cashed in CA$649k worth of shares. On the flip side, Executive Director & MD of Nordics Noora Ahola spent CA$64k on purchasing shares. We don't view these transactions as a positive sign.
Does Goldsky Resources Boast High 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. Based on our data, Goldsky Resources insiders have about 0.5% of the stock, worth approximately CA$4.0m. We consider this fairly low insider ownership.
So What Does This Data Suggest About Goldsky Resources Insiders?
The stark truth for Goldsky Resources is that there has been more insider selling than insider buying in the last three months. But we take heart from prior transactions. But we'd like it if insiders owned more stock, overall. So we can't be sure that insiders are optimistic. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 5 warning signs for Goldsky Resources (3 are a bit unpleasant!) that we believe deserve your full attention.
Of course Goldsky Resources 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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