Non-Executive Director Paul Chapman Just Bought 9.9% More Shares In Sunshine Gold Limited (ASX:SHN)
Even if it's not a huge purchase, we think it was good to see that Paul Chapman, the Non-Executive Director of Sunshine Gold Limited (ASX:SHN) recently shelled out AU$100k to buy stock, at AU$0.025 per share. Although the purchase is not a big one, increasing their shareholding by only 9.9%, it can be interpreted as a good sign.
Check out our latest analysis for Sunshine Gold
The Last 12 Months Of Insider Transactions At Sunshine Gold
Notably, that recent purchase by Paul Chapman is the biggest insider purchase of Sunshine Gold shares that we've seen in the last year. That implies that an insider found the current price of AU$0.025 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Sunshine Gold share holders is that insiders were buying at near the current 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. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does Sunshine Gold Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 39% of Sunshine Gold shares, worth about AU$7.5m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Sunshine Gold Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Insiders likely see value in Sunshine Gold shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 5 warning signs (3 are a bit unpleasant!) that you ought to be aware of before buying any shares in Sunshine Gold.
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.
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