Insiders who purchased Viva Gold Corp. (CVE:VAU) shares in the past 12 months are unlikely to be deeply impacted by the stock’s 19% decline over the past week. Even after accounting for the recent loss, the CA$240.0k worth of stock purchased by them is now worth CA$350.0k or in other words, their investment continues to give good returns.
Although we don’t think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Viva Gold
The Last 12 Months Of Insider Transactions At Viva Gold
The insider William Philip Richards made the biggest insider purchase in the last 12 months. That single transaction was for CA$240k worth of shares at a price of CA$0.12 each. We do like to see buying, but this purchase was made at well below the current price of CA$0.17. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn’t tell us much about what they think of current prices.
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!
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 Of Viva Gold
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Viva Gold insiders own about CA$1.4m worth of shares (which is 6.7% of the company). We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Overall, this level of ownership isn’t that impressive, but it’s certainly better than nothing!
So What Do The Viva Gold Insider Transactions Indicate?
The fact that there have been no Viva Gold insider transactions recently certainly doesn’t bother us. But insiders have shown more of an appetite for the stock, over the last year. We’d like to see bigger individual holdings. However, we don’t see anything to make us think Viva Gold insiders are doubting the company. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Viva Gold. For example, Viva Gold has 5 warning signs (and 3 which shouldn’t be ignored) we think you should know about.
Of course Viva Gold may not be the best stock to buy. So you may wish to see this free collection of high quality 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 of direct interests only, but not derivative transactions or indirect interests.
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Find out whether Viva Gold is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.
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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.