Non-Independent Director of Blue Star Gold Picks Up 15% More Stock
Blue Star Gold Corp. (CVE:BAU) shareholders (or potential shareholders) will be happy to see that the Non-Independent Director, Georg Pollert, recently bought a whopping CA$2.4m worth of stock, at a price of CA$0.38. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 15%.
See our latest analysis for Blue Star Gold
Blue Star Gold Insider Transactions Over The Last Year
Notably, that recent purchase by Non-Independent Director Georg Pollert was not the only time they bought Blue Star Gold shares this year. Earlier in the year, they paid CA$0.37 per share in a CA$3.4m purchase. That means that even when the share price was higher than CA$0.37 (the recent price), an insider wanted to purchase shares. 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. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Over the last year, we can see that insiders have bought 31.68m shares worth CA$11m. On the other hand they divested 8.98m shares, for CA$3.4m. Overall, Blue Star Gold insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and 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!
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).
Does Blue Star Gold Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Blue Star Gold insiders own 74% of the company, worth about CA$20m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Blue Star Gold Tell Us?
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 during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Blue Star Gold. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 4 warning signs for Blue Star Gold (2 don't sit too well with us) you should be aware of.
But note: Blue Star 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 currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
