Even if it's not a huge purchase, we think it was good to see that Ewan Downie, the President of Premier Gold Mines Limited (TSE:PG) recently shelled out CA$81k to buy stock, at CA$1.71 per share. However, we do note that it only increased their holding by 1.1%, and it wasn't a huge purchase by absolute value, either.
Premier Gold Mines Insider Transactions Over The Last Year
Notably, that recent purchase by Ewan Downie is the biggest insider purchase of Premier Gold Mines shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of CA$1.68. 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 is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Premier Gold Mines insiders bought shares last year, they didn't sell. You can see the insider transactions (by 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Premier Gold Mines 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. We usually like to see fairly high levels of insider ownership. Our data indicates that Premier Gold Mines insiders own about CA$11m worth of shares (which is 3.1% of the company). We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Premier Gold Mines Insiders?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss last year, which makes us a little cautious. Insiders likely see value in Premier Gold Mines shares, given these transactions (along with notable insider ownership of the company). Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Premier Gold Mines.
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, but not derivative transactions.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.
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