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We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares in Guyana Goldfields Inc. (TSE:GUY).
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
The Last 12 Months Of Insider Transactions At Guyana Goldfields
In the last twelve months, the biggest single sale by an insider was when the , John Sheridan, sold CA$1.7m worth of shares at a price of CA$4.91 per share. While we don't usually like to see insider selling, it's more concerning if the sales take price at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is CA$0.90. So it is hard to draw any strong conclusion from it.
In the last twelve months insiders purchased 200k shares for CA$343k. But they sold 838k for CA$3.7m. All up, insiders sold more shares in Guyana Goldfields than they bought, over the last year. The average sell price was around US$4.41. Insider selling doesn't make us excited to buy. But the selling was at much higher prices than the current share price (CA$0.90), so it probably doesn't tell us a lot about the value on offer today. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders at Guyana Goldfields Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Guyana Goldfields. Overall, three insiders shelled out US$139k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.
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 information indicates that Guyana Goldfields insiders own about CA$784k worth of shares. We might be missing something but that seems like very low insider ownership.
What Might The Insider Transactions At Guyana Goldfields Tell Us?
It is good to see recent purchasing. But we can't say the same for the transactions over the last 12 months. We're not thrilled with the relatively low insider ownership and the longer term transaction history. But we like the recent purchasing. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.