Insiders who bought Sunshine Gold Limited (ASX:SHN) stock in the last 12 months recover some losses, but still down

Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Sunshine Gold Limited (ASX:SHN), it sends a favourable message to the company’s shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Sunshine Gold

Sunshine Gold Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Non-Executive Director Antonio Torresan bought AU$250k worth of shares at a price of AU$0.045 per share. That means that even when the share price was higher than AU$0.022 (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.

While Sunshine Gold insiders bought shares during the last year, they didn’t sell. 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!

Sunshine Gold is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Sunshine Gold Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Sunshine Gold insiders own 39% of the company, worth about AU$6.6m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.

So What Do The Sunshine Gold Insider Transactions Indicate?

It doesn’t really mean much that no insider has traded Sunshine Gold shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Sunshine Gold and their transactions don’t cause us concern. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Sunshine Gold. To that end, you should learn about the 6 warning signs we’ve spotted with Sunshine Gold (including 3 which are concerning).

Of course Sunshine 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.