Insider Spends US$250k Buying More Shares In Argonaut Gold
Potential Argonaut Gold Inc. (TSE:AR) shareholders may wish to note that the CEO, President & Director, Richard Young, recently bought CA$250k worth of stock, paying CA$0.38 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 13%.
See our latest analysis for Argonaut Gold
The Last 12 Months Of Insider Transactions At Argonaut Gold
In fact, the recent purchase by CEO, President & Director Richard Young was not their only acquisition of Argonaut Gold shares this year. Earlier in the year, they paid CA$0.60 per share in a CA$789k purchase. That means that an insider was happy to buy shares at above the current price of CA$0.40. 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. 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.
While Argonaut Gold insiders bought shares during the last year, they didn't sell. The average buy price was around CA$0.51. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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).
Insider Ownership Of Argonaut Gold
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Based on our data, Argonaut Gold insiders have about 0.8% of the stock, worth approximately CA$3.7m. We consider this fairly low insider ownership.
What Might The Insider Transactions At Argonaut Gold Tell Us?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the 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 Argonaut Gold stock. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - Argonaut Gold has 1 warning sign we think 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
