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Galantas Gold Corporation (CVE:GAL) is up 21%, while insiders who purchased CA$2.1m are up 90%

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Galantas Gold Corporation (CVE:GAL) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 21%, resulting in a CA$7.5m rise in the company's market capitalisation. In other words, the original CA$2.1m purchase is now worth CA$4.0m.

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.

See our latest analysis for Galantas Gold

The Last 12 Months Of Insider Transactions At Galantas Gold

Over the last year, we can see that the biggest insider purchase was by insider Eric Sprott for CA$1.9m worth of shares, at about CA$0.30 per share. We do like to see buying, but this purchase was made at well below the current price of CA$0.58. 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 Galantas Gold insiders were buying shares, but not selling. 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!

insider-trading-volume
insider-trading-volume

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Galantas 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 21% of Galantas Gold shares, worth about CA$9.1m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Galantas Gold Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Galantas Gold shares in the last quarter. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Galantas Gold insiders are doubting the company, and they do own shares. 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. When we did our research, we found 5 warning signs for Galantas Gold (2 are concerning!) that we believe deserve your full attention.

But note: Galantas Gold 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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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