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Potential i-80 Gold Corp. (TSE:IAU) shareholders may wish to note that the CEO & Director, Richard Young, recently bought CA$500k worth of stock, paying CA$0.80 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 26%.
Check out our latest analysis for i-80 Gold
The Last 12 Months Of Insider Transactions At i-80 Gold
Notably, that recent purchase by CEO & Director Richard Young was not the only time they bought i-80 Gold shares this year. They previously made an even bigger purchase of CA$1.0m worth of shares at a price of CA$1.52 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$1.12). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing 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.
Over the last year, we can see that insiders have bought 3.85m shares worth CA$3.4m. But they sold 130.00k shares for CA$255k. In total, i-80 Gold insiders bought more than they sold over the last year. The average buy price was around CA$0.89. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. 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!
i-80 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 i-80 Gold Boast High 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. 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 10.0% of i-80 Gold shares, worth about CA$49m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About i-80 Gold Insiders?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of i-80 Gold we think they are probably pretty confident of a bright future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To that end, you should learn about the 2 warning signs we've spotted with i-80 Gold (including 1 which is a bit unpleasant).