- Oops!Something went wrong.Please try again later.
Those following along with Blue Star Gold Corp. (CVE:BAU) will no doubt be intrigued by the recent purchase of shares by Georg Pollert, Non-Independent Director of the company, who spent a stonking CA$2.0m on stock at an average price of CA$0.65. Not only is that a big swing, but it increased their holding size by 13%, which is definitely great to see.
Blue Star Gold Insider Transactions Over The Last Year
In fact, the recent purchase by Non-Independent Director Georg Pollert was not their only acquisition of Blue Star Gold shares this year. Earlier in the year, they paid CA$0.50 per share in a CA$3.2m purchase. We do like to see buying, but this purchase was made at well below the current price of CA$0.62. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
While Blue Star Gold insiders bought shares during the last year, they didn't sell. They paid about CA$0.58 on average. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does Blue Star Gold Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Blue Star Gold insiders own 61% of the company, worth about CA$23m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Blue Star Gold Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Blue Star Gold insiders are well aligned, and quite possibly think the share price is too low. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 5 warning signs (3 are a bit concerning!) that you ought to be aware of before buying any shares in Blue Star Gold.
Of course Blue Star Gold may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
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.