Non-Independent Director of Blue Star Gold Picks Up 3.8% More Stock
Those following along with Blue Star Gold Corp. (CVE:BAU) will no doubt be intrigued by the recent purchase of shares by Georg Pollert, Non-Independent Director of the company, who spent a stonking CA$878k on stock at an average price of CA$0.20. 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 3.8%.
The Last 12 Months Of Insider Transactions At Blue Star Gold
In fact, the recent purchase by Non-Independent Director Georg Pollert was not their only acquisition of Blue Star Gold shares this year. Earlier in the year, they paid CA$0.24 per share in a CA$2.0m purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.20). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Georg Pollert was the only individual insider to buy shares in the last twelve months.
Georg Pollert purchased 12.82m shares over the year. The average price per share was CA$0.23. 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!
View our latest analysis for Blue Star Gold
Blue Star 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.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Blue Star Gold insiders own 68% of the company, worth about CA$24m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Blue Star Gold Tell Us?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Blue Star Gold insiders are well aligned, and quite possibly think the share price is too low. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Blue Star Gold. Our analysis shows 5 warning signs for Blue Star Gold (2 are concerning!) and we strongly recommend you look at them before investing.
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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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.