Yahoo Finance Several Insiders Invested In Loncor Gold Flagging Positive News
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Loncor Gold Inc. (TSE:LN), that sends out a positive message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Loncor Gold
Loncor Gold Insider Transactions Over The Last Year
Notably, that recent purchase by Kevin Baker is the biggest insider purchase of Loncor Gold shares that we've seen in the last year. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.40. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
In the last twelve months insiders purchased 1.35m shares for CA$405k. On the other hand they divested 500.00k shares, for CA$150k. In total, Loncor Gold insiders bought more than they sold over the last year. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Loncor Gold Insiders Bought Stock Recently
Over the last three months, we've seen significantly more insider buying, than insider selling, at Loncor Gold. Insiders spent CA$405k on shares. But Founder & Executive Chairman Arnold Kondrat sold shares worth CA$150k. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.
Insider Ownership Of Loncor Gold
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. Loncor Gold insiders own about CA$14m worth of shares. That equates to 23% 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 Loncor Gold Tell Us?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Loncor Gold we think they are probably pretty confident of a bright 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. Be aware that Loncor Gold is showing 5 warning signs in our investment analysis, and 3 of those are potentially serious...
Of course Loncor Gold may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
