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 Gunpoint Exploration Ltd. (CVE:GUN), it sends a favourable message to the company's shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Gunpoint Exploration

The Last 12 Months Of Insider Transactions At Gunpoint Exploration

Over the last year, we can see that the biggest insider purchase was by Chairman P. Reifel for CA$545k worth of shares, at about CA$0.50 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.48). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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.

In the last twelve months Gunpoint Exploration insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

Have Gunpoint Exploration Insiders Traded Recently?

Over the last three months, we've seen a bit of insider buying at Gunpoint Exploration. Chairman P. Reifel purchased CA$13k worth of shares in that period. We like it when there are only buyers, and no sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Gunpoint Exploration insiders own about CA$2.2m worth of shares (which is 9.0% 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!

What Might The Insider Transactions At Gunpoint Exploration Tell Us?

We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it'd be more encouraging if Gunpoint Exploration insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Gunpoint Exploration. Every company has risks, and we've spotted 5 warning signs for Gunpoint Exploration (of which 2 are significant!) you should know about.

Of course Gunpoint Exploration 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, 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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