Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Golden Age Exploration Ltd. (CSE:GDN), that sends out a positive message to the company's shareholders.
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.
Golden Age Exploration Insider Transactions Over The Last Year
The insider Damien Reynolds made the biggest insider purchase in the last 12 months. That single transaction was for CA$660k worth of shares at a price of CA$0.15 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.10). 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.
Happily, we note that in the last year insiders paid CA$1.2m for 11.49m shares. On the other hand they divested 1.11m shares, for CA$79k. In total, Golden Age Exploration insiders bought more than they sold over the last year. They paid about CA$0.11 on average. 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!
View our latest analysis for Golden Age Exploration
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insiders At Golden Age Exploration Have Bought Stock Recently
There has been significantly more insider buying, than selling, at Golden Age Exploration, over the last three months. In total, two insiders bought CA$925k worth of shares in that time. On the other hand, insiders netted CA$24k by selling. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.
Does Golden Age Exploration Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Golden Age Exploration insiders own 52% of the company, currently worth about CA$2.6m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Golden Age Exploration Insiders?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Golden Age Exploration. Looks promising! 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. For example - Golden Age Exploration has 5 warning signs we think you should be aware of.
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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