U.S. markets closed
  • S&P 500

    4,145.19
    -6.75 (-0.16%)
     
  • Dow 30

    32,803.47
    +76.65 (+0.23%)
     
  • Nasdaq

    12,657.55
    -63.03 (-0.50%)
     
  • Russell 2000

    1,921.82
    +15.37 (+0.81%)
     
  • Crude Oil

    88.53
    -0.01 (-0.01%)
     
  • Gold

    1,792.40
    -14.50 (-0.80%)
     
  • Silver

    19.86
    -0.26 (-1.30%)
     
  • EUR/USD

    1.0187
    -0.0063 (-0.61%)
     
  • 10-Yr Bond

    2.8400
    +0.1640 (+6.13%)
     
  • GBP/USD

    1.2071
    -0.0088 (-0.72%)
     
  • USD/JPY

    134.9700
    +1.9540 (+1.47%)
     
  • BTC-USD

    23,076.43
    -131.63 (-0.57%)
     
  • CMC Crypto 200

    533.20
    -2.02 (-0.38%)
     
  • FTSE 100

    7,439.74
    -8.32 (-0.11%)
     
  • Nikkei 225

    28,175.87
    +243.67 (+0.87%)
     

Eric Sprott of Tudor Gold Corp. (CVE:TUD) Just Spent CA$2.5m On Shares

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Tudor Gold Corp. (CVE:TUD) shareholders (or potential shareholders) will be happy to see that insider Eric Sprott recently bought a whopping CA$2.5m worth of stock, at a price of CA$2.00. While that only increased their holding size by 3.9%, it is still a big swing by our standards.

View our latest analysis for Tudor Gold

Tudor Gold Insider Transactions Over The Last Year

In fact, the recent purchase by Eric Sprott was the biggest purchase of Tudor Gold shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than CA$1.95 (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. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

While Tudor Gold insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and 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!

insider-trading-volume
insider-trading-volume

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Tudor Gold Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Tudor Gold insiders own 18% of the company, worth about CA$70m. 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 Tudor Gold Tell Us?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives 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 Tudor Gold insiders are well aligned, and that they may think the share price is too low. 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. For example, Tudor Gold has 3 warning signs (and 2 which make us uncomfortable) we think you should know about.

Of course Tudor 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, but not derivative transactions.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.