Yahoo Finance Labrador Gold Corp. (CVE:LAB) insiders placed bullish bets worth CA$11m in the last 12 months
Multiple insiders secured a larger position in Labrador Gold Corp. (CVE:LAB) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Labrador Gold
Labrador Gold Insider Transactions Over The Last Year
The insider Eric Sprott made the biggest insider purchase in the last 12 months. That single transaction was for CA$10.0m worth of shares at a price of CA$0.90 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$1.03. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Happily, we note that in the last year insiders paid CA$11m for 12.03m shares. On the other hand they divested 100.00k shares, for CA$47k. In the last twelve months there was more buying than selling by Labrador Gold insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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.
Labrador Gold Insiders Bought Stock Recently
It's good to see that Labrador Gold insiders have made notable investments in the company's shares. We can see that insider Eric Sprott paid CA$821k for shares in the company. No-one sold. This could be interpreted as suggesting a positive outlook.
Does Labrador Gold Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 15% of Labrador Gold shares, worth about CA$24m. 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 Do The Labrador Gold Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Labrador Gold insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Labrador Gold has 3 warning signs (and 2 which are significant) we think you should know about.
But note: Labrador Gold may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, but not derivative transactions.
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.
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