An Insider Of Freeman Gold Picks Up 1.2% More Stock

Even if it's not a huge purchase, we think it was good to see that Brian Paes-Braga, a Freeman Gold Corp. (CVE:FMAN) insider, recently shelled out CA$110k to buy stock, at CA$0.37 per share. However, it only increased their shares held by 1.2%, and it wasn't a huge purchase by absolute value, either.

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The Last 12 Months Of Insider Transactions At Freeman Gold

In fact, the recent purchase by insider Brian Paes-Braga was not their only acquisition of Freeman Gold shares this year. They previously made an even bigger purchase of CA$1.1m worth of shares at a price of CA$0.21 per share. We do like to see buying, but this purchase was made at well below the current price of CA$0.33. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

While Freeman Gold insiders bought shares during the last year, they didn't sell. 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!

View our latest analysis for Freeman Gold

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 Of Freeman Gold

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Insiders own 29% of Freeman Gold shares, worth about CA$30m. 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 Does This Data Suggest About Freeman Gold Insiders?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Freeman Gold insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Freeman Gold. At Simply Wall St, we've found that Freeman Gold has 4 warning signs (3 shouldn't be ignored!) that deserve your attention before going any further with your analysis.

But note: Freeman Gold may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.

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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.