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Multiple insiders secured a larger position in Montage Gold Corp. (CVE:MAU) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Montage Gold
Montage Gold Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Non-Independent Director Richard Clark for CA$1.0m worth of shares, at about CA$0.70 per share. We do like to see buying, but this purchase was made at well below the current price of CA$2.16. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Happily, we note that in the last year insiders paid CA$4.9m for 5.07m shares. On the other hand they divested 325.55k shares, for CA$310k. In total, Montage Gold insiders bought more than they sold over the last year. They paid about CA$0.97 on average. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Montage Gold is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership Of Montage Gold
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. Montage Gold insiders own about CA$37m worth of shares. That equates to 5.2% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Montage Gold Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Montage Gold and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Montage Gold. At Simply Wall St, we found 3 warning signs for Montage Gold that deserve your attention before buying any shares.