U.S. markets closed
  • S&P 500

    4,179.76
    +60.55 (+1.47%)
     
  • Dow 30

    34,053.94
    -39.02 (-0.11%)
     
  • Nasdaq

    12,200.82
    +384.50 (+3.25%)
     
  • Russell 2000

    2,001.22
    +40.41 (+2.06%)
     
  • Crude Oil

    76.00
    -0.41 (-0.54%)
     
  • Gold

    1,927.10
    -15.70 (-0.81%)
     
  • Silver

    23.55
    -0.06 (-0.27%)
     
  • EUR/USD

    1.0921
    -0.0073 (-0.67%)
     
  • 10-Yr Bond

    3.3960
    -0.0010 (-0.03%)
     
  • GBP/USD

    1.2223
    -0.0148 (-1.20%)
     
  • USD/JPY

    128.6700
    -0.2550 (-0.20%)
     
  • BTC-USD

    23,506.45
    -235.62 (-0.99%)
     
  • CMC Crypto 200

    541.21
    -4.11 (-0.75%)
     
  • FTSE 100

    7,820.16
    +59.05 (+0.76%)
     
  • Nikkei 225

    27,402.05
    +55.17 (+0.20%)
     

Trade Alert: The President Of Barrick Gold Corporation (TSE:ABX), Dennis Bristow, Has Just Spent US$4.0m Buying 3.3% More Shares

Barrick Gold Corporation (TSE:ABX) shareholders (or potential shareholders) will be happy to see that the President, Dennis Bristow, recently bought a whopping CA$4.0m worth of stock, at a price of CA$20.78. While that only increased their holding size by 3.3%, it is still a big swing by our standards.

View our latest analysis for Barrick Gold

The Last 12 Months Of Insider Transactions At Barrick Gold

In fact, the recent purchase by President Dennis Bristow was not their only acquisition of Barrick Gold shares this year. They previously made an even bigger purchase of CA$5.9m worth of shares at a price of CA$29.66 per share. That means that an insider was happy to buy shares at above the current price of CA$21.46. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months insiders purchased 1.12m shares for CA$30m. On the other hand they divested 248.55k shares, for CA$7.6m. In total, Barrick Gold insiders bought more than they sold over the last year. The average buy price was around CA$26.26. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
insider-trading-volume

Barrick Gold is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Barrick 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Barrick Gold insiders own 0.6% of the company, currently worth about CA$240m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Barrick Gold Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Barrick Gold. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Barrick Gold has 2 warning signs and it would be unwise to ignore these.

But note: Barrick 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, but not derivative transactions.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here