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Potential Galantas Gold Corporation (CVE:GAL) shareholders may wish to note that the Chief Operating Officer, Brendan Morris, recently bought CA$169k worth of stock, paying CA$0.36 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 3,903%.
View our latest analysis for Galantas Gold
The Last 12 Months Of Insider Transactions At Galantas Gold
In the last twelve months, the biggest single purchase by an insider was when insider Eric Sprott bought CA$533k worth of shares at a price of CA$0.40 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.36). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
While Galantas Gold insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does Galantas Gold Boast High 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. From our data, it seems that Galantas Gold insiders own 9.8% of the company, worth about CA$3.9m. But they may have an indirect interest through a corporate structure that we haven't picked up on. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Galantas Gold Insiders?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Galantas Gold insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Galantas Gold. To help with this, we've discovered 5 warning signs (3 are concerning!) that you ought to be aware of before buying any shares in Galantas Gold.