Pleasing Signs As A Number Of Insiders Buy Galiano Gold Stock
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Galiano Gold Inc.'s (TSE:GAU) instance, it's good news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Galiano Gold
Galiano Gold Insider Transactions Over The Last Year
The Independent Chairman Paul Wright made the biggest insider purchase in the last 12 months. That single transaction was for CA$233k worth of shares at a price of CA$1.43 each. That means that even when the share price was higher than CA$1.24 (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. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Galiano Gold insiders may have bought shares in the last year, but they didn't sell any. Their average price was about CA$1.25. I'd consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Galiano Gold is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At Galiano Gold Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Galiano Gold. In total, insiders bought CA$268k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.
Does Galiano Gold Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company 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. Our data isn't picking up on much insider ownership at Galiano Gold, though insiders do hold about CA$1.3m worth of shares. We might be missing something but that seems like very low insider ownership.
What Might The Insider Transactions At Galiano Gold Tell Us?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Galiano Gold insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with Galiano Gold and understanding this should be part of your investment process.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
