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Potential EnGold Mines Ltd. (CVE:EGM) shareholders may wish to note that the Independent Director, Anton Novak, recently bought CA$200k worth of stock, paying CA$0.08 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 18%.
Check out our latest analysis for EnGold Mines
EnGold Mines Insider Transactions Over The Last Year
In fact, the recent purchase by Anton Novak was the biggest purchase of EnGold Mines shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of CA$0.06. 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 an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Anton Novak.
The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. EnGold Mines insiders own about CA$999k worth of shares (which is 44% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The EnGold Mines Insider Transactions Indicate?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest EnGold Mines insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing EnGold Mines. For example, EnGold Mines has 3 warning signs (and 2 which are potentially serious) we think you should know about.