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Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Goldmoney Inc. (TSE:XAU), that sends out a positive message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Goldmoney
The Last 12 Months Of Insider Transactions At Goldmoney
The Co-Founder Roy Sebag made the biggest insider purchase in the last 12 months. That single transaction was for CA$510k worth of shares at a price of CA$6.66 each. We do like to see buying, but this purchase was made at well below the current price of CA$8.17. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While Goldmoney insiders bought shares during the last year, they didn't sell. The average buy price was around CA$7.41. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. 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 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.
Does Goldmoney Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Goldmoney insiders own 31% of the company, worth about CA$33m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Goldmoney Tell Us?
It doesn't really mean much that no insider has traded Goldmoney shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Goldmoney and their transactions don't cause us concern. 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. When we did our research, we found 2 warning signs for Goldmoney (1 makes us a bit uncomfortable!) that we believe deserve your full attention.