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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 Warrior Gold Inc. (CVE:WAR), 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 Warrior Gold
In the last twelve months, the biggest single sale by an insider was when the President, Danièle Spethmann, sold CA$75k worth of shares at a price of CA$0.075 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of CA$0.085. We generally consider it a negative if insiders have been selling on market, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 34.8% of Danièle Spethmann's stake. Notably Danièle Spethmann was also the biggest buyer, having purchased CA$128k worth of shares.
Happily, we note that in the last year insiders paid CA$128k for 1.8m shares. But they sold 1.4m for CA$107k. In total, Warrior Gold insiders bought more than they sold over the last year. 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!
Warrior 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.
Have Warrior Gold Insiders Traded Recently?
There was only a small bit of insider buying, worth CA$5.7k, in the last three months. Overall, we don't think these recent trades are particularly informative, one way or the other.
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. From our data, it seems that Warrior Gold insiders own 10% of the company, worth about CA$513k. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
What Might The Insider Transactions At Warrior Gold Tell Us?
We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Warrior Gold insiders are doubting the company. Along with insider transactions, I recommend checking if Warrior Gold is growing revenue. This free chart of historic revenue and earnings should make that easy.
But note: Warrior Gold 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 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 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.