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Insiders who acquired US$117.1k worth of Patagonia Gold Corp.'s (CVE:PGDC) stock at an average price of US$0.059 in the past 12 months may be dismayed by the recent 20% price decline. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only US$40.0k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Patagonia Gold
Patagonia Gold Insider Transactions Over The Last Year
In fact, the recent purchase by Timothy Hunt was the biggest purchase of Patagonia Gold shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than CA$0.02 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Patagonia Gold insiders may have bought shares in the last year, but they didn't sell any. Their average price was about CA$0.059. This is nice to see since it implies that insiders might see value around current prices. 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!
Patagonia 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.
Patagonia Gold Insiders Bought Stock Recently
It's good to see that Patagonia Gold insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought CA$114k worth of shares. This could be interpreted as suggesting a positive outlook.
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. We usually like to see fairly high levels of insider ownership. Patagonia Gold insiders own about CA$6.1m worth of shares (which is 65% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.