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Are Insiders Buying Solstice Gold Corp. (CVE:SGC) Stock?

Simply Wall St

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 shareholders might well want to know whether insiders have been buying or selling shares in Solstice Gold Corp. (CVE:SGC).

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.

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. 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’.

View our latest analysis for Solstice Gold

Solstice Gold Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Kevin Reid for CA$91k worth of shares, at about CA$0.15 per share. That means that an insider was happy to buy shares at above the current price. 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. It’s not at all bad to see insiders buy shares at or above current prices.

In the last twelve months insiders paid CA$267k for 1.72m shares purchased. In the last twelve months there was more buying than selling by Solstice Gold insiders. Their average price was about CA$0.15. This is nice to see since it implies that insiders might see value around current prices (around CA$0.14). You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

TSXV:SGC Recent Insider Trading, February 27th 2019

Solstice Gold 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.

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$152k worth of shares. That shows some optimism about the company’s future.

Does Solstice Gold Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Solstice Gold insiders own 22% of the company, worth about CA$2.2m. 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. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn’t make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Solstice Gold shares, given these transactions (along with notable insider ownership of the company). Along with insider transactions, I recommend checking if Solstice Gold is growing revenue. This free chart of historic revenue and earnings should make that easy.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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. Thank you for reading.