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It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Rua Gold Inc.'s (CVE:RUA) case, it's fantastic news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Rua Gold
Rua Gold Insider Transactions Over The Last Year
Notably, that recent purchase by Oliver Lennox-King is the biggest insider purchase of Rua Gold shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.18). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months Rua 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!
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).
Rua Gold Insiders Bought Stock Recently
Over the last quarter, Rua Gold insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought CA$515k worth of shares. That shows some optimism about the company's future.
Insider Ownership Of Rua Gold
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 13% of Rua Gold shares, worth about CA$5.6m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Rua Gold Insider Transactions Indicate?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Rua Gold stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 3 warning signs for Rua Gold (1 is a bit concerning) you should be aware of.