Yahoo Finance Insider Buying: The Goldbank Mining Corporation (CVE:GLB) Independent Director Just Bought 70% More Shares
Whilst it may not be a huge deal, we thought it was good to see that the Goldbank Mining Corporation (CVE:GLB) Independent Director, Robert Addie, recently bought CA$100k worth of stock, for CA$0.05 per share. Even though that isn't a massive buy, it did increase their holding by 70%, which is arguably a good sign.
View our latest analysis for Goldbank Mining
The Last 12 Months Of Insider Transactions At Goldbank Mining
In fact, the recent purchase by Independent Director Robert Addie was not their only acquisition of Goldbank Mining shares this year. They previously made an even bigger purchase of CA$200k worth of shares at a price of CA$0.07 per share. That means that even when the share price was higher than CA$0.065 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. 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.
In the last twelve months Goldbank Mining insiders were buying shares, but not selling. The average buy price was around CA$0.062. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. 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!
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 Goldbank Mining
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Goldbank Mining insiders own about CA$3.5m worth of shares. That equates to 38% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Goldbank Mining Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Goldbank Mining insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Goldbank Mining. While conducting our analysis, we found that Goldbank Mining has 6 warning signs and it would be unwise to ignore them.
Of course Goldbank Mining 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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