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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Golden Pursuit Resources Ltd.'s (CVE:GDP) instance, it's good news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Golden Pursuit Resources
The Last 12 Months Of Insider Transactions At Golden Pursuit Resources
Over the last year, we can see that the biggest insider purchase was by insider Kaitlyn McClay for CA$315k worth of shares, at about CA$0.10 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$0.20), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
In the last twelve months insiders purchased 3.75m shares for CA$429k. But insiders sold 3.50m shares worth CA$368k. In total, Golden Pursuit Resources insiders bought more than they sold over the last year. 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!
Golden Pursuit Resources 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.
Insiders At Golden Pursuit Resources Have Bought Stock Recently
There was some insider buying at Golden Pursuit Resources over the last quarter. President Brian McClay shelled out CA$21k for shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
Does Golden Pursuit Resources Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 39% of Golden Pursuit Resources shares, worth about CA$3.0m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Golden Pursuit Resources Insider Transactions Indicate?
We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Golden Pursuit Resources and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 5 warning signs for Golden Pursuit Resources that deserve your attention before buying any shares.