Insider Spends CA$1.5m Buying More Shares In Goldsky Resources
Goldsky Resources Corp. (CVE:GSKR) shareholders (or potential shareholders) will be happy to see that the CEO & Executive Director, Russell Bradford, recently bought a whopping CA$1.5m worth of stock, at a price of CA$3.20. That purchase boosted their holding by 168%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.
The Last 12 Months Of Insider Transactions At Goldsky Resources
In fact, the recent purchase by Russell Bradford was the biggest purchase of Goldsky Resources shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than CA$3.16 (the recent price), an insider wanted to purchase shares. 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.
Goldsky Resources insiders may have bought shares in the last year, but they didn't sell any. Their average price was about CA$2.42. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
View our latest analysis for Goldsky Resources
Goldsky Resources is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Does Goldsky Resources 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests Goldsky Resources insiders own 0.7% of the company, worth about CA$4.1m. We prefer to see high levels of insider ownership.
So What Do The Goldsky Resources Insider Transactions Indicate?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Goldsky Resources insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Goldsky Resources. At Simply Wall St, we found 4 warning signs for Goldsky Resources that deserve your attention before buying any shares.
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 of direct interests only, but not derivative transactions or indirect interests.
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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.