Galantas Gold's Insiders' Timely Sale May Have Helped Mitigate 17% Dip in Share Price
Insiders at Galantas Gold Corporation (CVE:GAL) sold CA$38m worth of stock at an average price of CA$0.42 a share over the past year, making the most of their investment. The company's market valuation decreased by CA$84m after the stock price dropped 17% over the past week, but insiders were spared from painful losses.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Galantas Gold
Over the last year, we can see that the biggest insider sale was by the insider, Luis Catril, for CA$38m worth of shares, at about CA$0.42 per share. That means that even when the share price was below the current price of CA$0.48, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was 100% of Luis Catril's holding. The only individual insider seller over the last year was Luis Catril.
In the last twelve months insiders purchased 131.40m shares for CA$28m. On the other hand they divested 91.31m shares, for CA$38m. You can see the insider transactions (by companies and 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!
See our latest analysis for Galantas Gold
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Insiders At Galantas Gold Have Sold Stock Recently
Over the last three months, we've seen significant insider selling at Galantas Gold. In total, insider Luis Catril sold CA$38m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.
Does Galantas Gold Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 27% of Galantas Gold shares, worth about CA$113m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Galantas Gold Insider Transactions Indicate?
An insider sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For instance, we've identified 3 warning signs for Galantas Gold (2 are significant) you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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