Bullish Goldmoney Insiders Loaded Up On CA$891.3k Of Stock
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Goldmoney Inc. (TSE:XAU), that sends out a positive message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Goldmoney
The Last 12 Months Of Insider Transactions At Goldmoney
Over the last year, we can see that the biggest insider purchase was by Co-Founder Roy Sebag for CA$231k worth of shares, at about CA$7.76 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$7.69). 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. In our view, the price an insider pays for shares is very important. 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.
Goldmoney insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Goldmoney is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Goldmoney Insiders Bought Stock Recently
It's good to see that Goldmoney insiders have made notable investments in the company's shares. Overall, three insiders shelled out CA$709k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.
Insider Ownership Of Goldmoney
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Goldmoney insiders own about CA$28m worth of shares. That equates to 27% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Goldmoney Tell Us?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Goldmoney we think they are probably pretty confident of a bright future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 3 warning signs for Goldmoney (of which 1 makes us a bit uncomfortable!) you should know about.
Of course Goldmoney 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.
