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Flynn Gold Limited (ASX:FG1) shareholders (or potential shareholders) will be happy to see that insider Colin Bourke recently bought a whopping AU$839k worth of stock, at a price of AU$0.02. That increased their holding by a full 164%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.
We've discovered 4 warning signs about Flynn Gold. View them for free.
Flynn Gold Insider Transactions Over The Last Year
In fact, the recent purchase by Colin Bourke was the biggest purchase of Flynn Gold shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than AU$0.022 (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. To us, it's very important to consider the price insiders pay for shares. 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.
While Flynn Gold insiders bought shares during the last year, they didn't sell. They paid about AU$0.022 on average. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for Flynn Gold
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Does Flynn Gold Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Flynn Gold insiders own about AU$2.7m worth of shares. That equates to 38% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Flynn Gold Tell Us?
The recent insider purchases are heartening. And the longer term insider transactions also give 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 Flynn Gold insiders are well aligned, and that they may think the share price is too low. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. When we did our research, we found 4 warning signs for Flynn Gold (3 can't be ignored!) that we believe deserve your full attention.