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Rua Gold Inc. (CVE:RUA) shareholders (or potential shareholders) will be happy to see that the Chairman, Oliver Lennox-King, recently bought a whopping CA$1m worth of stock, at a price of CA$0.60. Not only is that a big swing, but it increased their holding size by 44%, which is definitely great to see.
View our latest analysis for Rua Gold
The Last 12 Months Of Insider Transactions At Rua Gold
In fact, the recent purchase by Oliver Lennox-King was the biggest purchase of Rua Gold shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of CA$0.60 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Rua Gold share holders is that insiders were buying at near the current price.
While Rua Gold insiders bought shares during the last year, they didn't sell. Their average price was about CA$0.71. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Rua Gold 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.
Does Rua Gold 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. Insiders own 14% of Rua Gold shares, worth about CA$4.4m, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Do The Rua Gold Insider Transactions Indicate?
The recent insider purchases are heartening. 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. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Rua Gold insiders are reasonably well aligned, and optimistic for the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that Rua Gold is showing 3 warning signs in our investment analysis, and 1 of those shouldn't be ignored...