Investors who take an interest in Pure Gold Mining Inc. (CVE:PGM) should definitely note that the Independent Director, Mark O'Dea, recently paid CA$1.52 per share to buy CA$594k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 7.4%.
Pure Gold Mining 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$10m worth of shares at a price of CA$1.05 each. Even though the purchase was made at a significantly lower price than the recent price (CA$1.32), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
In the last twelve months insiders purchased 12.84m shares for CA$16m. But they sold 1.66m shares for CA$3.0m. In the last twelve months there was more buying than selling by Pure Gold Mining insiders. They paid about CA$1.23 on average. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. 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!
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.
Insider Ownership of Pure Gold Mining
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Pure Gold Mining insiders own about CA$83m worth of shares. That equates to 16% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Pure Gold Mining Tell Us?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Pure Gold Mining 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. At Simply Wall St, we've found that Pure Gold Mining has 4 warning signs (1 doesn't sit too well with us!) that deserve your attention before going any further with your analysis.
But note: Pure Gold Mining 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. 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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