Insider Spends US$93k Buying More Shares In Blossom Gold
Whilst it may not be a huge deal, we thought it was good to see that the Blossom Gold Inc. (TSE:BGAU) Independent Director, David Fennell, recently bought CA$93k worth of stock, for CA$1.55 per share. Although the purchase is not a big one, increasing their shareholding by only 3.6%, it can be interpreted as a good sign.
Blossom Gold Insider Transactions Over The Last Year
In fact, the recent purchase by David Fennell was the biggest purchase of Blossom Gold 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$1.45 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months Blossom Gold insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Check out our latest analysis for Blossom Gold
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of Blossom Gold
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Blossom Gold insiders own 6.9% of the company, worth about CA$13m. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At Blossom Gold Tell Us?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Blossom Gold shares, given these transactions (along with notable insider ownership of the company). While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 3 warning signs for Blossom Gold (2 shouldn't be ignored!) and we strongly recommend you look at them before investing.
But note: Blossom 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 of direct interests only, but not derivative transactions or indirect interests.
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.