China Gold International Resources Drops To CA$6.37, Yet Insiders May Have Sold Too Early

Despite the fact that China Gold International Resources Corp. Ltd.'s (TSE:CGG) value has dropped 10% in the last week insiders who sold US$450k worth of stock in the past 12 months have had less success. The average selling price of US$9.00 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for China Gold International Resources

The Last 12 Months Of Insider Transactions At China Gold International Resources

The Lead Independent Non Executive Director, Ying Bin He, made the biggest insider sale in the last 12 months. That single transaction was for CA$450k worth of shares at a price of CA$9.00 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (CA$6.37). So it may not tell us anything about how insiders feel about the current share price. Ying Bin He was the only individual insider to sell over the last year.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership Of China Gold International Resources

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Our information indicates that China Gold International Resources insiders own about CA$637k worth of shares. However, it's possible that insiders might have an indirect interest through a more complex structure. This level of insider ownership is notably low, and not very encouraging.

So What Does This Data Suggest About China Gold International Resources Insiders?

The fact that there have been no China Gold International Resources insider transactions recently certainly doesn't bother us. The insider transactions at China Gold International Resources are not inspiring us to buy. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for China Gold International Resources.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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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.