Pleasing Signs As A Number Of Insiders Buy Liberty Gold Stock
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Liberty Gold Corp. (TSE:LGD), it sends a favourable message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Liberty Gold
Liberty Gold Insider Transactions Over The Last Year
The President Jason Attew made the biggest insider purchase in the last 12 months. That single transaction was for CA$300k worth of shares at a price of CA$0.40 each. That means that even when the share price was higher than CA$0.29 (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. We always take careful note of the price insiders pay when purchasing shares. 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 879.49k shares worth CA$353k. On the other hand they divested 200.00k shares, for CA$104k. In the last twelve months there was more buying than selling by Liberty Gold insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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 Liberty Gold Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests Liberty Gold insiders own 4.2% of the company, worth about CA$4.2m. We prefer to see high levels of insider ownership.
What Might The Insider Transactions At Liberty Gold Tell Us?
The fact that there have been no Liberty Gold insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Liberty Gold stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Liberty Gold. To that end, you should learn about the 4 warning signs we've spotted with Liberty Gold (including 1 which makes us a bit uncomfortable).
But note: Liberty 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.
