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We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Gold Standard Ventures Corp (TSE:GSV).
What Is Insider Buying?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
Gold Standard Ventures Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Co-Founder Jonathan Awde bought CA$100k worth of shares at a price of CA$1.22 per share. That means that an insider was happy to buy shares at above the current price of CA$1.00. 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. 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.
Over the last year, we can see that insiders have bought 265.98k shares worth CA$306k. On the other hand they divested 50206 shares, for CA$51k. In the last twelve months there was more buying than selling by Gold Standard Ventures insiders. The chart below shows insider transactions (by individuals) over the last year. 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).
Gold Standard Ventures Insiders Bought Stock Recently
There has been significantly more insider buying, than selling, at Gold Standard Ventures, over the last three months. In total, two insiders bought CA$128k worth of shares in that time. But we did see insider selling worth CA$51k. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.
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. Our data suggests Gold Standard Ventures insiders own 1.9% of the company, worth about CA$5.4m. I generally like to see higher levels of ownership.
So What Does This Data Suggest About Gold Standard Ventures Insiders?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Gold Standard Ventures insiders are reasonably well aligned, and optimistic for the future. Of course, the future is what matters most. So if you are interested in Gold Standard Ventures, you should check out this free report on analyst forecasts for the company.
But note: Gold Standard Ventures 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 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.
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