Insiders who bought into AEX Gold Inc. (CVE:AEX) earlier this year might wish they'd invested more as stock gained 18%

AEX Gold Inc. (CVE:AEX) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 18%, resulting in a CA$16m rise in the company's market capitalisation. As a result, their original purchase of CA$248k worth of stock is now worth CA$285k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for AEX Gold

AEX Gold Insider Transactions Over The Last Year

While no particular insider transaction stood out, we can still look at the overall trading.

In the last twelve months AEX Gold insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume

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).

Insider Ownership of AEX Gold

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that AEX Gold insiders own about CA$6.4m worth of shares (which is 6.1% of the company). But they may have an indirect interest through a corporate structure that we haven't picked up on. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About AEX Gold Insiders?

The fact that there have been no AEX Gold insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if AEX Gold insiders bought more shares in the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example, AEX Gold has 4 warning signs (and 2 which are a bit unpleasant) we think you should know about.

Of course AEX 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.

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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