Have Chesapeake Gold Insiders Been Selling Stock?

Anyone interested in Chesapeake Gold Corp. (CVE:CKG) should probably be aware that a company insider, Alan Pangbourne, recently divested CA$472k worth of shares in the company, at an average price of CA$4.20 each. However, the silver lining is that the sale only reduced their total holding by 1.5%, so we're hesitant to read anything much into it, on its own.

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The Last 12 Months Of Insider Transactions At Chesapeake Gold

In the last twelve months, the biggest single purchase by an insider was when insider Eric Sprott bought CA$4.4m worth of shares at a price of CA$1.20 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$4.34. 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.

Over the last year, we can see that insiders have bought 3.82m shares worth CA$4.6m. But they sold 183.50k shares for CA$694k. In the last twelve months there was more buying than selling by Chesapeake Gold insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Chesapeake 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.

Does Chesapeake Gold 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. 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 36% of Chesapeake Gold shares, worth about CA$112m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Chesapeake Gold Tell Us?

The insider sales have outweighed the insider buying, at Chesapeake Gold, in the last three months. In contrast, they appear keener if you look at the last twelve months. We are also comforted by the high levels of insider ownership. So the recent selling doesn't worry us. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we've found that Chesapeake Gold has 4 warning signs (2 are a bit unpleasant!) that deserve your attention before going any further with your analysis.

Of course Chesapeake Gold 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.