Despite Recent Gains, Goldcliff Resource Insiders Are Still Down CA$57k

Some of the losses seen by insiders who purchased CA$149.9k worth of Goldcliff Resource Corporation (CVE:GCN) shares over the past year were recovered after the stock increased by 25% over the past week. The purchase, however, has proven to be a pricey bet, with losses currently totalling CA$57k.

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.

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The Last 12 Months Of Insider Transactions At Goldcliff Resource

The President George Sanders made the biggest insider purchase in the last 12 months. That single transaction was for CA$144k worth of shares at a price of CA$0.05 each. That means that even when the share price was higher than CA$0.025 (the recent price), an insider wanted to purchase shares. 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. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was George Sanders.

George Sanders purchased 3.73m shares over the year. The average price per share was CA$0.04. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Goldcliff Resource

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.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Goldcliff Resource insiders own about CA$622k worth of shares (which is 44% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Goldcliff Resource Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Goldcliff Resource insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Goldcliff Resource. To assist with this, we've discovered 4 warning signs that you should run your eye over to get a better picture of Goldcliff Resource.

Of course Goldcliff Resource 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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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.