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Great news for Solstice Gold Corp. (CVE:SGC): Insiders acquired stock in large numbers last year

·3 min read

It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Solstice Gold Corp.'s (CVE:SGC) case, it's fantastic 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.

See our latest analysis for Solstice Gold

Solstice Gold Insider Transactions Over The Last Year

In fact, the recent purchase by Michael Gentile was the biggest purchase of Solstice 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$0.085 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for 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.

While Solstice Gold insiders bought shares during the last year, they didn't sell. The average buy price was around CA$0.14. I'd consider this a positive as it suggests insiders see value at around the current price. 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

Solstice Gold is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insiders At Solstice Gold Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at Solstice Gold. Not only was there no selling that we can see, but they collectively bought CA$323k worth of shares. This makes one think the business has some good points.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Solstice Gold insiders own 38% of the company, worth about CA$6.1m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Solstice Gold Insider Transactions Indicate?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Solstice Gold shares, given these transactions (along with notable insider ownership of the company). 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 instance, we've identified 4 warning signs for Solstice Gold (3 don't sit too well with us) you should be aware of.

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.

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.

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