In This Article:
Insiders who bought CA$200.0k worth of EnGold Mines Ltd. (CVE:EGM) stock in the last year have seen some of their losses recouped as the stock gained 25% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling CA$75k.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for EnGold Mines
The Last 12 Months Of Insider Transactions At EnGold Mines
The Independent Director Anton Novak made the biggest insider purchase in the last 12 months. That single transaction was for CA$200k worth of shares at a price of CA$0.08 each. That means that an insider was happy to buy shares at above the current price of CA$0.05. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Anton Novak was the only individual insider to buy during the last year.
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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that EnGold Mines insiders own 44% of the company, worth about CA$908k. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About EnGold Mines Insiders?
The fact that there have been no EnGold Mines insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like EnGold Mines insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. 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. For example, EnGold Mines has 3 warning signs (and 2 which are significant) we think you should know about.