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In the last year, multiple insiders have substantially increased their holdings of Goldgroup Mining Inc. (CVE:GGA) stock, indicating that insiders' optimism about the company's prospects has increased.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At Goldgroup Mining
In fact, the recent purchase by Eric Sprott was the biggest purchase of Goldgroup Mining shares made by an insider individual in the last twelve months, according to our records. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.58. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
In the last twelve months Goldgroup Mining 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for Goldgroup Mining
Goldgroup Mining is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Goldgroup Mining Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Goldgroup Mining. We can see that insider Eric Sprott paid CA$6.8m for shares in the company. No-one sold. This could be interpreted as suggesting a positive outlook.
Does Goldgroup Mining Boast High Insider Ownership?
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. From our data, it seems that Goldgroup Mining insiders own 13% of the company, worth about CA$14m. Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Goldgroup Mining Insider Transactions Indicate?
The recent insider purchase is heartening. 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 Goldgroup Mining insiders are well aligned, and that they may think the share price is too low. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that Goldgroup Mining is showing 5 warning signs in our investment analysis, and 4 of those are a bit unpleasant...