Q-Gold Resources Loses CA$4.8m Market Value But Insiders See Windfall Of CA$74k

Insiders who purchased Q-Gold Resources Ltd. (CVE:QGR) shares in the past 12 months are unlikely to be deeply impacted by the stock's 11% decline over the past week. Even after accounting for the recent loss, the CA$392.8k worth of stock purchased by them is now worth CA$466.6k or in other words, their investment continues to give good returns.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Q-Gold Resources Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Director Tito Gandhi bought CA$300k worth of shares at a price of CA$0.15 per share. We do like to see buying, but this purchase was made at well below the current price of CA$0.20. 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.

In the last twelve months insiders purchased 2.33m shares for CA$393k. But insiders sold 1.64m shares worth CA$145k. In the last twelve months there was more buying than selling by Q-Gold Resources insiders. They paid about CA$0.17 on average. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. 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!

View our latest analysis for Q-Gold Resources

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).

Q-Gold Resources Insiders Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at Q-Gold Resources. COO, VP of Exploration & Director Andreas Rompel purchased CA$25k worth of shares in that period. We like it when there are only buyers, and no sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.

Does Q-Gold Resources Boast High Insider Ownership?

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. We usually like to see fairly high levels of insider ownership. Based on our data, Q-Gold Resources insiders have about 4.1% of the stock, worth approximately CA$1.6m. I generally like to see higher levels of ownership.

So What Does This Data Suggest About Q-Gold Resources Insiders?

Our data shows a little insider buying, but no selling, in the last three months. Overall the buying isn't worth writing home about. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Q-Gold Resources stock. 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. Every company has risks, and we've spotted 6 warning signs for Q-Gold Resources (of which 5 make us uncomfortable!) you should know about.

Of course Q-Gold Resources 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.