Even if it's not a huge purchase, we think it was good to see that Michael Kosowan, the Independent Director of TDG Gold Corp. (CVE:TDG) recently shelled out CA$85k to buy stock, at CA$0.17 per share. Although the purchase is not a big one, increasing their shareholding by only 5.1%, it can be interpreted as a good sign.
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The Last 12 Months Of Insider Transactions At TDG Gold
In fact, the recent purchase by Independent Director Michael Kosowan was not their only acquisition of TDG Gold shares this year. Earlier in the year, they paid CA$0.30 per share in a CA$150k purchase. That means that an insider was happy to buy shares at above the current price of CA$0.17. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing 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 TDG Gold insiders bought shares during the last year, they didn't sell. They paid about CA$0.25 on average. I'd consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
TDG Gold is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of TDG Gold
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Insiders own 9.6% of TDG Gold shares, worth about CA$2.0m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About TDG Gold Insiders?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that TDG Gold insiders are reasonably well aligned, and optimistic for the future. 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 5 warning signs we've spotted with TDG Gold (including 2 which make us uncomfortable).