Insiders who bought CA$440.9k worth of Goldshore Resources Inc. (CVE:GSHR) stock in the last year recovered part of their losses as the stock rose by 28% last week. However, the purchase is proving to be an expensive wager as insiders are yet to get ahead of their losses which currently stand at CA$135k since the time of purchase.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Goldshore Resources
The Last 12 Months Of Insider Transactions At Goldshore Resources
Over the last year, we can see that the biggest insider purchase was by President Brett Richards for CA$178k worth of shares, at about CA$0.15 per share. That means that an insider was happy to buy shares at above the current price of CA$0.12. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months Goldshore Resources insiders were buying shares, but not selling. Their average price was about CA$0.17. These transactions suggest that insiders have considered the current price attractive. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Goldshore Resources 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Based on our data, Goldshore Resources insiders have about 3.2% of the stock, worth approximately CA$866k. We prefer to see high levels of insider ownership.
So What Does This Data Suggest About Goldshore Resources Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Goldshore Resources stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Goldshore Resources. Every company has risks, and we've spotted 3 warning signs for Goldshore Resources (of which 2 are concerning!) you should know about.