Investors who take an interest in First Mining Gold Corp. (TSE:FF) should definitely note that the CEO & Director, Daniel Wilton, recently paid CA$0.22 per share to buy CA$440k worth of the stock. We reckon that's a good sign, especially since the purchase boosted their holding by 80%.
The Last 12 Months Of Insider Transactions At First Mining Gold
Notably, that recent purchase by CEO & Director Daniel Wilton was not the only time they bought First Mining Gold shares this year. Earlier in the year, they paid CA$0.27 per share in a CA$540k purchase. That means that even when the share price was higher than CA$0.20 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Over the last year, we can see that insiders have bought 5.99m shares worth CA$1.5m. But they sold 37000 shares for CA$8.3k. In the last twelve months there was more buying than selling by First Mining Gold insiders. The average buy price was around CA$0.24. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
First Mining Gold is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Based on our data, First Mining Gold insiders have about 2.8% of the stock, worth approximately CA$3.4m. I generally like to see higher levels of ownership.
So What Do The First Mining Gold Insider Transactions Indicate?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. 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 First Mining 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. To that end, you should learn about the 5 warning signs we've spotted with First Mining Gold (including 1 which is significant).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.
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