Non-Independent Director of Montage Gold Picks Up 28% More Stock
Those following along with Montage Gold Corp. (CVE:MAU) will no doubt be intrigued by the recent purchase of shares by Richard Clark, Non-Independent Director of the company, who spent a stonking CA$1.0m on stock at an average price of CA$0.70. Not only is that a big swing, but it increased their holding size by 28%, which is definitely great to see.
See our latest analysis for Montage Gold
The Last 12 Months Of Insider Transactions At Montage Gold
Notably, that recent purchase by Non-Independent Director Richard Clark was not the only time they bought Montage Gold shares this year. They previously made an even bigger purchase of CA$1.0m worth of shares at a price of CA$0.70 per share. We do like to see buying, but this purchase was made at well below the current price of CA$1.09. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Over the last year, we can see that insiders have bought 6.48m shares worth CA$4.5m. On the other hand they divested 260.55k shares, for CA$216k. In total, Montage Gold insiders bought more than they sold over the last year. 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 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).
Insider Ownership Of Montage Gold
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 5.1% of Montage Gold shares, worth about CA$14m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Montage Gold Insiders?
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 Montage Gold insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 4 warning signs for Montage Gold (2 are concerning!) and we strongly recommend you look at them before investing.
But note: Montage 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.
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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.
