Multiple insiders secured a larger position in GoviEx Uranium Inc. (CVE:GXU) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for GoviEx Uranium

GoviEx Uranium Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Director Eric Krafft bought CA$1.4m worth of shares at a price of CA$0.16 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.08). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months GoviEx Uranium insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

GoviEx Uranium is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that GoviEx Uranium insiders own about CA$7.4m worth of shares (which is 11% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About GoviEx Uranium Insiders?

The fact that there have been no GoviEx Uranium insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think GoviEx Uranium insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing GoviEx Uranium. Be aware that GoviEx Uranium is showing 6 warning signs in our investment analysis, and 4 of those make us uncomfortable...