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Looking at Siren Gold Limited's (ASX:SNG ) insider transactions over the last year, we can see that insiders were net buyers. That is, there were more number of shares purchased by insiders than there were sold.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Siren Gold
The Last 12 Months Of Insider Transactions At Siren Gold
The Executive Chairman & MD Brian Rodan made the biggest insider purchase in the last 12 months. That single transaction was for AU$656k worth of shares at a price of AU$0.45 each. That means that an insider was happy to buy shares at above the current price of AU$0.25. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Brian Rodan was the only individual insider to buy during the last year.
Brian Rodan purchased 2.15m shares over the year. The average price per share was AU$0.48. 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!
Siren Gold is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Siren Gold 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. Siren Gold insiders own about AU$6.6m worth of shares. That equates to 32% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Siren Gold Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Siren Gold and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Siren Gold. To help with this, we've discovered 4 warning signs (3 are significant!) that you ought to be aware of before buying any shares in Siren Gold.