We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Goldmoney Inc. (TSE:XAU), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
The Last 12 Months Of Insider Transactions At Goldmoney
In the last twelve months, the biggest single purchase by an insider was when Co-Founder Roy Sebag bought CA$77k worth of shares at a price of CA$1.59 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$2.21), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Over the last year, we can see that insiders have bought 49950 shares worth CA$80k. On the other hand they divested 2500 shares, for CA$6.3k. In the last twelve months there was more buying than selling by Goldmoney insiders. 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!
Goldmoney is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Have Goldmoney Insiders Traded Recently?
In the last three months company Chief Financial Officer Steve Fray divested CA$6.3k worth of stock. That is not a lot. The net selling is so small that it's hard to draw any conclusions from these recent transactions.
Does Goldmoney Boast High Insider Ownership?
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 28% of Goldmoney shares, worth about CA$49m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Goldmoney Insider Transactions Indicate?
While there has not been any insider buying in the last three months, there has been selling. But the sales were small, so we're not concerned. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Goldmoney and their transactions don't cause us concern. Of course, the future is what matters most. So if you are interested in Goldmoney, you should check out this free report on analyst forecasts for the company.
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.
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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.