Those following along with Golden Star Resources Ltd. (TSE:GSC) will no doubt be intrigued by the recent purchase of shares by insider Yousriya Loza-Sawiris, who spent a stonking US$3.1m on stock at an average price of US$2.97. While that only increased their holding size by 0.6%, it is still a big swing by our standards.
The Last 12 Months Of Insider Transactions At Golden Star Resources
Notably, that recent purchase by Yousriya Loza-Sawiris is the biggest insider purchase of Golden Star Resources shares that we've seen in the last year. Even though the purchase was made at a significantly lower price than the recent price (CA$4.08), 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 Golden Star Resources insiders were buying shares, but not selling. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Golden Star Resources
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Golden Star Resources insiders own 30% of the company, currently worth about CA$136m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Golden Star Resources Tell Us?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Golden Star Resources. Nice! Of course, the future is what matters most. So if you are interested in Golden Star Resources, you should check out this free report on analyst forecasts for the company.
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.
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