Are Insiders Buying New Carolin Gold Corp. (CVE:LAD) Stock?
It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in New Carolin Gold Corp. (CVE:LAD).
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.
Check out our latest analysis for New Carolin Gold
The Last 12 Months Of Insider Transactions At New Carolin Gold
Independent Director Robert Lunde made the biggest insider purchase in the last 12 months. That single transaction was for CA$73k worth of shares at a price of CA$0.09 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.055). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. 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. We note that Robert Lunde was both the biggest buyer and the biggest seller.
In the last twelve months insiders purchased 998.50k shares for CA$96k. On the other hand they divested 603000 shares, for CA$70k. Overall, New Carolin Gold insiders were net buyers last year. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
New Carolin Gold is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership of New Carolin Gold
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests New Carolin Gold insiders own 3.9% of the company, worth about CA$105k. I generally like to see higher levels of ownership.
So What Does This Data Suggest About New Carolin Gold Insiders?
The fact that there have been no New Carolin Gold insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if New Carolin Gold insiders bought more shares in the company. Along with insider transactions, I recommend checking if New Carolin Gold is growing revenue. This free chart of historic revenue and earnings should make that easy.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
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