Yahoo Finance U.S. GoldMining Insiders Still US$27k Away From Original Investment Value
Some of the losses seen by insiders who purchased US$120.2k worth of U.S. GoldMining Inc. (NASDAQ:USGO) shares over the past year were recovered after the stock increased by 18% over the past week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled US$27k since the time of purchase.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for U.S. GoldMining
The Last 12 Months Of Insider Transactions At U.S. GoldMining
Over the last year, we can see that the biggest insider purchase was by Chairman of the Board Alastair Still for US$76k worth of shares, at about US$10.00 per share. That means that an insider was happy to buy shares at above the current price of US$7.70. 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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
While U.S. GoldMining insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own US$1.5m worth of U.S. GoldMining stock, about 1.8% of the company. I generally like to see higher levels of ownership.
What Might The Insider Transactions At U.S. GoldMining Tell Us?
It doesn't really mean much that no insider has traded U.S. GoldMining shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it'd be more encouraging if U.S. GoldMining insiders bought more shares in the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 4 warning signs for U.S. GoldMining (of which 2 are a bit concerning!) you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
