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Over the last year, a good number of insiders have significantly increased their holdings in Allied Gold Corporation (TSE:AAUC). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Allied Gold
The Last 12 Months Of Insider Transactions At Allied Gold
The Director, Pierre Chenard, made the biggest insider sale in the last 12 months. That single transaction was for CA$1.8m worth of shares at a price of CA$3.65 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is CA$2.95. So it may not shed much light on insider confidence at current levels. Pierre Chenard was the only individual insider to sell over the last year.
Over the last year, we can see that insiders have bought 1.06m shares worth CA$3.7m. But insiders sold 750.00k shares worth CA$2.7m. In the last twelve months there was more buying than selling by Allied Gold insiders. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Allied Gold Insiders Bought Stock Recently
At Allied Gold,over the last quarter, we have observed quite a lot more insider buying than insider selling. In total, seven insiders bought CA$3.4m worth of shares in that time. But Director Pierre Chenard sold shares worth CA$2.7m. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Allied Gold insiders own 22% of the company, currently worth about CA$165m 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.