Yahoo Finance Insider Buying: The Centerra Gold Inc. (TSE:CG) Interim President Just Bought 500% More Shares
Investors who take an interest in Centerra Gold Inc. (TSE:CG) should definitely note that the Interim President, Paul Wright, recently paid CA$6.96 per share to buy CA$261k worth of the stock. We reckon that's a good sign, especially since the purchase boosted their holding by 500%.
See our latest analysis for Centerra Gold
Centerra Gold Insider Transactions Over The Last Year
In fact, the recent purchase by Paul Wright was the biggest purchase of Centerra Gold shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$6.73). 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. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Paul Wright was the only individual insider to buy during the last year.
The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Centerra Gold is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Centerra Gold Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Based on our data, Centerra Gold insiders have about 0.2% of the stock, worth approximately CA$2.6m. I generally like to see higher levels of ownership.
So What Does This Data Suggest About Centerra Gold Insiders?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Centerra Gold stock. 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. To help with this, we've discovered 3 warning signs (2 make us uncomfortable!) that you ought to be aware of before buying any shares in Centerra Gold.
Of course Centerra 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, 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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