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It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in West Red Lake Gold Mines Ltd.'s (CVE:WRLG) case, it's fantastic news for shareholders.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
West Red Lake Gold Mines Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider Frank Giustra for CA$504k worth of shares, at about CA$0.72 per share. That means that an insider was happy to buy shares at above the current price of CA$0.57. 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.
Happily, we note that in the last year insiders paid CA$664k for 944.40k shares. But insiders sold 102.50k shares worth CA$74k. Overall, West Red Lake Gold Mines insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
View our latest analysis for West Red Lake Gold Mines
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.
Insiders At West Red Lake Gold Mines Have Bought Stock Recently
There was some insider buying at West Red Lake Gold Mines over the last quarter. In that period insiders spent CA$34k on shares. But Vice President of Technical Services Maurice Mostert sold CA$10k worth. It is nice to see that insiders have bought, but the quantum isn't large enough to get us excited.
Insider Ownership Of West Red Lake Gold Mines
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that West Red Lake Gold Mines insiders own 13% of the company, worth about CA$25m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.