White Gold Corp. (CVE:WGO) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 16% decline in the stock price. Even after accounting for the recent loss, the CA$1.32m worth of stock purchased by them is now worth CA$5.23m or in other words, their investment continues to give good returns.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
White Gold Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when insider Pasquale DiCapo bought CA$580k worth of shares at a price of CA$0.29 per share. We do like to see buying, but this purchase was made at well below the current price of CA$1.49. Because it occurred at a lower valuation, it doesn’t tell us much about whether insiders might find today’s price attractive.
In the last twelve months White Gold insiders were buying shares, but not selling. They paid about CA$0.38 on average. We don’t deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today’s share price. 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!
See our latest analysis for White Gold
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
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. A high insider ownership often makes company leadership more mindful of shareholder interests. White Gold insiders own about CA$43m worth of shares. That equates to 12% of the company. 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 White Gold Insider Transactions Indicate?
It doesn’t really mean much that no insider has traded White Gold shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in White Gold and we see no evidence to suggest they are worried about the future. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. Case in point: We’ve spotted 1 warning sign for White Gold you should be aware of.