Reunion Gold Corporation (CVE:RGD) insiders have profited after buying stock worth CA$2.1m last year, current gains stand at CA$3.3m
Insiders who bought Reunion Gold Corporation (CVE:RGD) stock lover the last 12 months are probably not as affected by last week’s 13% loss. Even after accounting for the recent loss, the CA$2.1m worth of stock purchased by them is now worth CA$5.4m or in other words, their investment continues to give good returns.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Reunion Gold
The Last 12 Months Of Insider Transactions At Reunion Gold
Over the last year, we can see that the biggest insider purchase was by Executive Chairman David Fennell for CA$1.0m worth of shares, at about CA$0.065 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$0.23), we still think insider buying is a positive. 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.
In the last twelve months insiders purchased 23.05m shares for CA$2.1m. But they sold 90.00k shares for CA$16k. Overall, Reunion Gold insiders were net buyers during the last year. They paid about CA$0.091 on average. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Reunion Gold is not the only stock that insiders are buying. 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 Reunion Gold Have Bought Stock Recently
It's good to see that Reunion Gold insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought CA$381k worth of shares. That shows some optimism about the company's future.
Does Reunion Gold Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It appears that Reunion Gold insiders own 7.2% of the company, worth about CA$14m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Reunion Gold Tell Us?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Reunion Gold shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 4 warning signs for Reunion Gold (of which 3 are concerning!) you should know about.
Of course Reunion 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.
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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.
