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Multiple insiders secured a larger position in Blue Star Gold Corp. (CVE:BAU) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Blue Star Gold
The Last 12 Months Of Insider Transactions At Blue Star Gold
Over the last year, we can see that the biggest insider purchase was by Non-Independent Director Georg Pollert for CA$2.0m worth of shares, at about CA$0.16 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.075). 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. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Blue Star Gold insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Blue Star Gold is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Blue Star Gold insiders own 60% of the company, currently worth about CA$4.6m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Blue Star Gold Insiders?
It doesn't really mean much that no insider has traded Blue Star Gold shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Blue Star Gold insiders think the business has merit. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 6 warning signs we've spotted with Blue Star Gold (including 5 which are concerning).