Despite Hitting AU$0.09, Dome Gold Mines Insiders Still Sold Too Soon

Dome Gold Mines Ltd's (ASX:DME) stock price has dropped 14% in the previous week, but insiders who sold AU$424k in stock over the past year have had less luck. Insiders would probably have been better off holding on to their shares given that the average selling price of AU$0.18 is still lower than the current share price.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Dome Gold Mines

The Non-Executive Director, Tadao Tsubata, made the biggest insider sale in the last 12 months. That single transaction was for AU$124k worth of shares at a price of AU$0.15 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of AU$0.09. So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Tadao Tsubata.

Tadao Tsubata ditched 2.32m shares over the year. The average price per share was AU$0.18. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Dome Gold Mines

I will like Dome Gold Mines better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insiders At Dome Gold Mines Have Sold Stock Recently

The last quarter saw substantial insider selling of Dome Gold Mines shares. Specifically, Non-Executive Director Tadao Tsubata ditched AU$174k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership Of Dome Gold Mines

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 26% of Dome Gold Mines shares, worth about AU$9.8m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Dome Gold Mines Insiders?

An insider sold Dome Gold Mines shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! 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 that end, you should learn about the 5 warning signs we've spotted with Dome Gold Mines (including 3 which can't be ignored).

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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.