Chairman & CEO of Allied Gold Peter Marrone Buys 6.0% More Shares

Simply Wall St · 10/16 11:24

Allied Gold Corporation (TSE:AAUC) shareholders (or potential shareholders) will be happy to see that the Chairman & CEO, Peter Marrone, recently bought a whopping CA$2.7m worth of stock, at a price of CA$3.10. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 6.0%.

See our latest analysis for Allied Gold

The Last 12 Months Of Insider Transactions At Allied Gold

Notably, that recent purchase by Peter Marrone is the biggest insider purchase of Allied Gold shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is CA$3.28. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Allied Gold insiders decided to buy shares at close to current prices.

Happily, we note that in the last year insiders paid CA$11m for 3.27m shares. On the other hand they divested 750.00k shares, for CA$2.7m. In total, Allied Gold insiders bought more than they sold 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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TSX:AAUC Insider Trading Volume October 16th 2024

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

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. It's great to see that Allied Gold insiders own 18% of the company, worth about CA$192m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Allied Gold Tell Us?

It is good to see recent purchasing. 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. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Allied Gold. That's what I like to see! 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 - Allied Gold has 1 warning sign 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.