Carlin Gold Loses CA$4.3m Market Value But Insiders See Windfall Of CA$343k
Insiders who bought Carlin Gold Corporation (CVE:CGD) in the last 12 months may probably not pay attention to the stock's recent 20% drop. Even after accounting for the recent loss, the CA$503.0k worth of stock purchased by them is now worth CA$845.9k or in other words, their investment continues to give good returns.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Carlin Gold
Over the last year, we can see that the biggest insider purchase was by Chairman Calvin Everett for CA$290k worth of shares, at about CA$0.30 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$0.64), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
All up, insiders sold more shares in Carlin Gold than they bought, over the last year. The average sell price was around CA$0.60. It's not too encouraging to see that insiders have sold at below the current price. But we wouldn't put too much weight on the insider selling. The chart below shows insider transactions (by companies and individuals) over the last year. 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 Carlin Gold
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Insiders At Carlin Gold Have Sold Stock Recently
There was substantially more insider selling, than buying, of Carlin Gold shares over the last three months. We note insiders cashed in CA$563k worth of shares. Meanwhile Chairman Calvin Everett bought CA$120k worth. Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the shares are not cheap.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Carlin Gold insiders own about CA$7.0m worth of shares. That equates to 40% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Carlin Gold Tell Us?
Unfortunately, there has been more insider selling of Carlin Gold stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, Carlin Gold makes money, and is growing profits. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 5 warning signs (3 don't sit too well with us!) that you ought to be aware of before buying any shares in Carlin Gold.
Of course Carlin 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.