Potential Sierra Nevada Gold Inc.( ASX:SNX ) shareholders may wish to note that the Non-Executive Chairman, Simon Lill, recently bought AU$200k worth of stock, paying AU$0.03 for each share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
The Last 12 Months Of Insider Transactions At Sierra Nevada Gold
Notably, that recent purchase by Simon Lill is the biggest insider purchase of Sierra Nevada Gold shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of AU$0.026. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Sierra Nevada Gold insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
See our latest analysis for Sierra Nevada Gold
Sierra Nevada Gold is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Does Sierra Nevada 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 16% of Sierra Nevada Gold shares, worth about AU$858k. 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 Does This Data Suggest About Sierra Nevada Gold Insiders?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Sierra Nevada Gold 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 Sierra Nevada Gold. Case in point: We've spotted 4 warning signs for Sierra Nevada Gold you should be aware of, and 3 of these don't sit too well with us.
Of course Sierra Nevada 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 of direct interests only, but not derivative transactions or indirect interests.
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