Wesdome Gold Mines Ltd.’s (TSE:WDO)) market cap declines to CA$1.2b but insiders who sold CA$2.7m stock were able to

Insiders seem to have made the most of their holdings by selling CA$2.7m worth of Wesdome Gold Mines Ltd. (TSE:WDO) stock at an average sell price of CA$15.28 during the past year. After the stock price dropped 6.8% last week, the company’s market value declined by CA$87m, but insiders were able to mitigate their losses.

Although we don’t think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Wesdome Gold Mines

The Last 12 Months Of Insider Transactions At Wesdome Gold Mines

Over the last year, we can see that the biggest insider sale was by the Independent Director, William Washington, for CA$1.6m worth of shares, at about CA$15.65 per share. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. It’s of some comfort that this sale was conducted at a price well above the current share price, which is CA$8.34. So it may not tell us anything about how insiders feel about the current share price.

Happily, we note that in the last year insiders paid CA$87k for 9.55k shares. But they sold 179.57k shares for CA$2.7m. All up, insiders sold more shares in Wesdome Gold Mines than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Wesdome Gold Mines Insiders Bought Stock Recently

Over the last three months, we’ve seen a bit of insider buying at Wesdome Gold Mines. Insiders bought CA$63k worth of shares in that time. It’s great to see that insiders are only buying, not selling. However, in this case the amount invested recently is quite small.

Insider Ownership Of Wesdome Gold Mines

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Based on our data, Wesdome Gold Mines insiders have about 0.5% of the stock, worth approximately CA$5.6m. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Wesdome Gold Mines Tell Us?

It is good to see recent purchasing. But we can’t say the same for the transactions over the last 12 months. Neither the level of insider ownership, nor the transactions over the last twelve months inspire us, but we think the recent buying is positive. 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. To help with this, we’ve discovered 2 warning signs (1 is a bit unpleasant!) that you ought to be aware of before buying any shares in Wesdome Gold Mines.

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.