Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Canadian Gold Corp. (CVE:CGC), that sends out a positive message to the company's shareholders.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Canadian Gold

The Last 12 Months Of Insider Transactions At Canadian Gold

Over the last year, we can see that the biggest insider purchase was by insider Robert McEwen for CA$100k worth of shares, at about CA$0.14 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$0.16), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Over the last year, we can see that insiders have bought 1.77m shares worth CA$262k. But insiders sold 26.00k shares worth CA$4.1k. In the last twelve months there was more buying than selling by Canadian Gold insiders. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insiders At Canadian Gold Have Bought Stock Recently

It's good to see that Canadian Gold insiders have made notable investments in the company's shares. In total, insiders bought CA$150k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Canadian Gold insiders own about CA$12m worth of shares. That equates to 40% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Canadian Gold Tell Us?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Canadian Gold insiders are well aligned, and that they may think the share price is too low. While it's good to be aware of 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. When we did our research, we found 5 warning signs for Canadian Gold (3 are concerning!) that we believe deserve your full attention.