Yahoo Finance Insiders saw their US$3.3m investment bump up to US$4.3m after Lundin Gold Inc. (TSE:LUG) soared 7.1% last week
Lundin Gold Inc. (TSE:LUG) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 7.1% resulting in a CA$193m addition to the company’s market value. As a result, their original purchase of US$3.3m worth of stock is now worth US$4.3m.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Lundin Gold
Lundin Gold Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Lead Director Charles Ashley Heppenstall bought CA$2.3m worth of shares at a price of CA$9.72 per share. We do like to see buying, but this purchase was made at well below the current price of CA$12.44. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Over the last year, we can see that insiders have bought 346.74k shares worth CA$3.3m. On the other hand they divested 313.80k shares, for CA$3.1m. Overall, Lundin Gold insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Lundin Gold is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At Lundin Gold Have Bought Stock Recently
Over the last quarter, Lundin Gold insiders have spent a meaningful amount on shares. In total, insiders bought CA$551k worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.
Insider Ownership Of Lundin Gold
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 1.0% of Lundin Gold shares, worth about CA$29m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Lundin Gold Tell Us?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Lundin Gold insiders are well aligned, and that they may think the share price is too low. 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. At Simply Wall St, we've found that Lundin Gold has 2 warning signs (1 can't be ignored!) that deserve your attention before going any further with your analysis.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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