Whilst it may not be a huge deal, we thought it was good to see that the Independence Gold Corp. (CVE:IGO) President, Randy Turner, recently bought CA$121k worth of stock, for CA$0.16 per share. Although the purchase is not a big one, increasing their shareholding by only 7.3%, it can be interpreted as a good sign.
Independence Gold Insider Transactions Over The Last Year
The insider Pierre-Luc Caron made the biggest insider purchase in the last 12 months. That single transaction was for CA$319k worth of shares at a price of CA$0.20 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.12). 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. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
While Independence Gold insiders bought shares during the last year, they didn't sell. Their average price was about CA$0.14. These transactions suggest that insiders have considered the current price attractive. 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!
See our latest analysis for Independence Gold
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of Independence Gold
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Independence Gold insiders own about CA$2.6m worth of shares (which is 7.1% of the company). But they may have an indirect interest through a corporate structure that we haven't picked up on. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Does This Data Suggest About Independence Gold Insiders?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Independence Gold insiders are expecting a bright future. 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 Independence Gold (3 are a bit unpleasant!) that we believe deserve your full attention.
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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