Some Gold Road Resources Limited (ASX:GOR) shareholders may be a little concerned to see that the Executive Director of Exploration & Growth and Executive Director, Justin Osborne, recently sold a whopping AU$2.0m worth of stock at a price of AU$1.31 per share. That's a big dump, and it decreased their holding size by 34%, which is notable but not too bad.
Gold Road Resources Insider Transactions Over The Last Year
In fact, the recent sale by Executive Director of Exploration & Growth and Executive Director Justin Osborne was not their only sale of Gold Road Resources shares this year. Earlier in the year, they fetched AU$1.33 per share in a -AU$2.0m sale. That means that even when the share price was slightly below the current price of AU$1.36, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 34%of Justin Osborne's holding.
Happily, we note that in the last year insiders paid AU$83k for 134000 shares. But insiders sold 1840679 shares worth AU$2.3m. Justin Osborne sold a total of 1840679 shares over the year at an average price of AU$1.25. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Gold Road Resources better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership of Gold Road Resources
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. Insiders own 5.4% of Gold Road Resources shares, worth about AU$65m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Gold Road Resources Insider Transactions Indicate?
An insider sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd think twice before buying! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course Gold Road Resources 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.