Bullish Centerra Gold Insiders Loaded Up On US$803.5k Of Stock
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Centerra Gold Inc.'s (TSE:CG) instance, it's good news for shareholders.
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.
Check out our latest analysis for Centerra Gold
The Last 12 Months Of Insider Transactions At Centerra Gold
In the last twelve months, the biggest single purchase by an insider was when Director Paul Wright bought CA$261k worth of shares at a price of CA$6.96 per share. That means that even when the share price was higher than CA$6.55 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Happily, we note that in the last year insiders paid CA$803k for 116.79k shares. But they sold 5.00k shares for CA$36k. In total, Centerra Gold insiders bought more than they sold over the last year. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Have Centerra Gold Insiders Traded Recently?
We saw some Centerra Gold insider buying shares in the last three months. Executive VP & CFO Darren Millman purchased CA$10k worth of shares in that period. It's good to see the insider buying, as well as the lack of recent sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.
Does Centerra Gold Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own CA$2.6m worth of Centerra Gold stock, about 0.2% of the company. We consider this fairly low insider ownership.
So What Does This Data Suggest About Centerra Gold Insiders?
We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Centerra Gold stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Centerra Gold. While conducting our analysis, we found that Centerra Gold has 1 warning sign and it would be unwise to ignore this.
Of course Centerra 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.
