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Investors who take an interest in Lavras Gold Corp. (CVE:LGC) should definitely note that the Independent Director, Rostislav Raykov, recently paid CA$2.14 per share to buy CA$510k worth of the stock. Although the purchase only increased their holding by 3.8%, it is still a solid purchase in our view.
See our latest analysis for Lavras Gold
The Last 12 Months Of Insider Transactions At Lavras Gold
Over the last year, we can see that the biggest insider sale was by the insider, Eric Sprott, for CA$1.0m worth of shares, at about CA$2.55 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is CA$2.24. So it may not tell us anything about how insiders feel about the current share price.
Over the last year, we can see that insiders have bought 5.34m shares worth CA$10m. On the other hand they divested 1.86m shares, for CA$4.2m. In total, Lavras Gold insiders bought more than they sold over the last year. They paid about CA$1.89 on average. To my mind it is good that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. 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!
Lavras Gold is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership Of Lavras Gold
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 30% of Lavras Gold shares, worth about CA$39m. 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 Lavras Gold Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Lavras Gold we think they are probably pretty confident of a bright 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. To help with this, we've discovered 3 warning signs (2 are potentially serious!) that you ought to be aware of before buying any shares in Lavras Gold.