Insiders Enjoy CA$719k Return After Buying Gunpoint Exploration Stock

Insiders who bought Gunpoint Exploration Ltd. (CVE:GUN) in the last 12 months may probably not pay attention to the stock's recent 19% drop. Even after accounting for the recent loss, the CA$1.43m worth of stock purchased by them is now worth CA$2.15m or in other words, their investment continues to give good returns.

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

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Gunpoint Exploration Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Chairman P. Reifel bought CA$1.0m worth of shares at a price of CA$0.40 per share. We do like to see buying, but this purchase was made at well below the current price of CA$0.61. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Gunpoint Exploration insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Gunpoint Exploration

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).

Insiders At Gunpoint Exploration Have Bought Stock Recently

It's good to see that Gunpoint Exploration insiders have made notable investments in the company's shares. Overall, three insiders shelled out CA$1.2m for shares in the company -- and none sold. This makes one think the business has some good points.

Insider Ownership Of Gunpoint Exploration

For a common shareholder, it is worth checking how many shares are held by company 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. It appears that Gunpoint Exploration insiders own 15% of the company, worth about CA$6.7m. 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 Gunpoint Exploration Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Gunpoint Exploration we think they are probably pretty confident of a bright future. 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. Case in point: We've spotted 5 warning signs for Gunpoint Exploration you should be aware of, and 3 of them make us uncomfortable.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.