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Insiders who bought 1911 Gold Corporation (CVE:AUMB) stock in the last 12 months were richly rewarded last week. The company's market value increased by CA$9.8m as a result of the stock's 46% gain over the same period. In other words, the original CA$1.27m purchase is now worth CA$4.22m.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for 1911 Gold
The Last 12 Months Of Insider Transactions At 1911 Gold
Over the last year, we can see that the biggest insider purchase was by insider Eric Sprott for CA$1m worth of shares, at about CA$0.06 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.20. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While 1911 Gold insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
1911 Gold is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Are 1911 Gold Insiders Buying Or Selling?
We saw some 1911 Gold insider buying shares in the last three months. Insiders shelled out CA$10k for shares in that time. 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 1911 Gold Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. 1911 Gold insiders own about CA$8.6m worth of shares. That equates to 28% 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.
So What Do The 1911 Gold Insider Transactions Indicate?
We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in 1911 Gold and their transactions don't cause us concern. 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. Case in point: We've spotted 5 warning signs for 1911 Gold you should be aware of, and 4 of these are a bit concerning.