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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Centerra Gold Inc.'s (TSE:CG) instance, it's good news for 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 Centerra Gold
The Last 12 Months Of Insider Transactions At Centerra Gold
In the last twelve months, the biggest single purchase by an insider was when Director Paul Wright bought CA$261k worth of shares at a price of CA$6.96 per share. That means that even when the share price was higher than CA$6.55 (the recent price), an insider wanted to purchase shares. 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. We always take careful note of the price insiders pay when purchasing 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.
Happily, we note that in the last year insiders paid CA$803k for 116.79k shares. But they sold 5.00k shares for CA$36k. In total, Centerra Gold insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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.
Have Centerra Gold Insiders Traded Recently?
We saw some Centerra Gold insider buying shares in the last three months. Executive VP & CFO Darren Millman purchased CA$10k worth of shares in that period. It's good to see the insider buying, as well as the lack of recent 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.
Does Centerra Gold Boast High 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. From looking at our data, insiders own CA$2.6m worth of Centerra Gold stock, about 0.2% of the company. We consider this fairly low insider ownership.