Viewing insider transactions for Challenger Gold Limited's (ASX:CEL ) over the last year, we see that insiders were net buyers. This means that a larger number of shares were purchased by insiders in relation to shares sold.

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

See our latest analysis for Challenger Gold

The Last 12 Months Of Insider Transactions At Challenger Gold

Over the last year, we can see that the biggest insider purchase was by Non-Executive Director Fletcher Quinn for AU$78k worth of shares, at about AU$0.07 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.052). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Fletcher Quinn.

Fletcher Quinn bought a total of 1.42m shares over the year at an average price of AU$0.069. 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!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Challenger Gold insiders own about AU$15m worth of shares. That equates to 21% of the company. 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 Does This Data Suggest About Challenger Gold Insiders?

It doesn't really mean much that no insider has traded Challenger Gold shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in Challenger Gold and we see no evidence to suggest they are worried about the future. 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 instance, we've identified 4 warning signs for Challenger Gold (2 don't sit too well with us) you should be aware of.