Greenheart Gold's Recent Gains Improve Losses On Insider Purchases Worth CA$2.80m
Insiders who purchased CA$2.80m worth of Greenheart Gold Inc. (CVE:GHRT) shares over the past year recouped some of their losses after price gained 27% last week. However, the purchase is proving to be an expensive wager as insiders are yet to get ahead of their losses which currently stand at CA$672k since the time of purchase.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Greenheart Gold
Over the last year, we can see that the biggest insider purchase was by Executive Chairman David Fennell for CA$2.3m worth of shares, at about CA$1.20 per share. That means that an insider was happy to buy shares at above the current price of CA$0.90. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays 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.
Greenheart Gold insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for Greenheart Gold
Greenheart Gold is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Greenheart Gold
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests Greenheart Gold insiders own 4.1% of the company, worth about CA$6.6m. We prefer to see high levels of insider ownership.
So What Does This Data Suggest About Greenheart Gold Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Greenheart Gold stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Greenheart Gold. Every company has risks, and we've spotted 3 warning signs for Greenheart Gold (of which 2 are concerning!) you should know about.
Of course Greenheart 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 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.