Viewing insider transactions for Flynn Gold Limited's (ASX:FG1 ) over the last year, we see that insiders were net buyers. This means that a larger number of shares were purchased by insiders in relation to shares sold.
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 Flynn Gold
The Last 12 Months Of Insider Transactions At Flynn Gold
Over the last year, we can see that the biggest insider purchase was by insider Colin Bourke for AU$615k worth of shares, at about AU$0.10 per share. That means that an insider was happy to buy shares at above the current price of AU$0.08. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Colin Bourke was the only individual insider to buy during the last year.
Colin Bourke bought 6.20m shares over the last 12 months at an average price of AU$0.10. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Flynn Gold is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Flynn Gold Boast High 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. Flynn Gold insiders own about AU$3.2m worth of shares. That equates to 30% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Flynn Gold Insider Transactions Indicate?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Flynn Gold insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Flynn Gold. Be aware that Flynn Gold is showing 5 warning signs in our investment analysis, and 3 of those are a bit concerning...