Yahoo Finance Bullish insiders at Torex Gold Resources Inc. (TSE:TXG) loaded up on US$890k of stock earlier this year
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Torex Gold Resources Inc.'s (TSE:TXG) case, it's fantastic news for shareholders.
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 Torex Gold Resources
The Last 12 Months Of Insider Transactions At Torex Gold Resources
In the last twelve months, the biggest single purchase by an insider was when Independent Director Roy Slack bought CA$200k worth of shares at a price of CA$12.99 per share. That means that even when the share price was higher than CA$9.84 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. 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.
Happily, we note that in the last year insiders paid CA$890k for 68.85k shares. But they sold 2.48k shares for CA$32k. In total, Torex Gold Resources 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!
Torex Gold Resources is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Have Torex Gold Resources Insiders Traded Recently?
Over the last three months, we've seen a bit of insider buying at Torex Gold Resources. Senior Vice President of Corporate Development & Investor Relations Daniel James Rollins bought CA$9.3k worth of 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 Torex Gold Resources Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Our data suggests Torex Gold Resources insiders own 0.2% of the company, worth about CA$2.1m. I generally like to see higher levels of ownership.
So What Does This Data Suggest About Torex Gold Resources Insiders?
Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Torex Gold Resources insiders are doubting the company. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 2 warning signs for Torex Gold Resources (1 shouldn't be ignored!) and we strongly recommend you look at them before investing.
But note: Torex Gold Resources may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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, but not derivative transactions.
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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.
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