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A number of insiders bought Marathon Gold Corporation (TSE:MOZ) stock last year, which is great news for shareholders

Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Marathon Gold Corporation (TSE:MOZ), it sends a favourable message to the company's shareholders.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Marathon Gold

The Last 12 Months Of Insider Transactions At Marathon Gold

Over the last year, we can see that the biggest insider sale was by the Independent Non-Executive Director, Julian Kemp, for CA$304k worth of shares, at about CA$1.45 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of CA$1.75. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was 58% of Julian Kemp's stake. The only individual insider seller over the last year was Julian Kemp.

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Over the last year, we can see that insiders have bought 201.44k shares worth CA$314k. On the other hand they divested 116.80k shares, for CA$166k. In total, Marathon Gold insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
insider-trading-volume

Marathon Gold is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Marathon Gold Insiders Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at Marathon Gold. They bought CA$222k worth in that time. However, Independent Non-Executive Director Julian Kemp netted CA$166k for sales. While it's good to see the insider buying, the net amount bought isn't enough for us to gain much confidence from it.

Does Marathon Gold Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Marathon Gold insiders own 2.3% of the company, worth about CA$10m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Marathon Gold Insiders?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Marathon Gold shares, given these transactions (along with notable insider ownership of 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. For instance, we've identified 3 warning signs for Marathon Gold (2 shouldn't be ignored) you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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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