Insider Buying: The Goldsource Mines Inc. (CVE:GXS) Chief Financial Officer Just Bought CA$110k Worth Of Shares
Whilst it may not be a huge deal, we thought it was good to see that the Goldsource Mines Inc. (CVE:GXS) Chief Financial Officer, Nicholas Campbell, recently bought CA$110k worth of stock, for CA$0.11 per share. Even though that isn't a massive buy, it did increase their holding by 64%, which is a arguably a good sign.
Check out our latest analysis for Goldsource Mines
The Last 12 Months Of Insider Transactions At Goldsource Mines
Over the last year, we can see that the biggest insider purchase was by insider Eric Sprott for CA$3.0m worth of shares, at about CA$0.12 per share. That means that an insider was happy to buy shares at above the current price of CA$0.10. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months insiders purchased 30.71m shares for CA$3.7m. On the other hand they divested 139000 shares, for CA$23k. Overall, Goldsource Mines insiders were net buyers last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Goldsource Mines 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.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Goldsource Mines insiders own about CA$3.8m worth of shares (which is 9.6% of the company). We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Goldsource Mines Tell Us?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss last year, which makes us a little cautious. 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 Goldsource Mines 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. Our analysis shows 4 warning signs for Goldsource Mines (1 is a bit unpleasant!) and we strongly recommend you look at them before investing.
But note: Goldsource Mines may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.
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