White Gold Corp. (CVE:WGO) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 17% resulting in a CA$6.9m addition to the company’s market value. As a result, the stock they originally bought for CA$605.3k is now worth CA$702.5k.
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.
We've discovered 2 warning signs about White Gold. View them for free.Over the last year, we can see that the biggest insider purchase was by President David D’Onofrio for CA$200k worth of shares, at about CA$0.22 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$0.24), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
In the last twelve months White Gold insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
See our latest analysis for White Gold
White Gold 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.
It's good to see that White Gold insiders have made notable investments in the company's shares. In total, insiders bought CA$271k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that White Gold insiders own about CA$5.8m worth of shares (which is 12% of the company). Whilst better than nothing, we're not overly impressed by these holdings.
It's certainly positive to see the recent insider purchases. 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. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on White Gold stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, White Gold has 2 warning signs (and 1 which is concerning) we think you should know about.
Of course White Gold 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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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.