The President of GFG Resources Inc (CVE:GFG), Brian Skanderbeg, Just Bought 12% More Shares
Whilst it may not be a huge deal, we thought it was good to see that the GFG Resources Inc (CVE:GFG) President, Brian Skanderbeg, recently bought CA$69k worth of stock, for CA$0.14 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 12%.
View our latest analysis for GFG Resources
GFG Resources Insider Transactions Over The Last Year
In fact, the recent purchase by President Brian Skanderbeg was not their only acquisition of GFG Resources shares this year. They previously made an even bigger purchase of CA$80k worth of shares at a price of CA$0.22 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.14). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay 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.
In the last twelve months GFG Resources insiders were buying shares, but not selling. The average buy price was around CA$0.18. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
GFG Resources is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 6.2% of GFG Resources shares, worth about CA$923k, according to our data. We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At GFG Resources Tell Us?
It's certainly positive to see the recent insider purchase. 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. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on GFG Resources stock. Along with insider transactions, I recommend checking if GFG Resources is growing revenue. This free chart of historic revenue and earnings should make that easy.
But note: GFG Resources 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.
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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