Despite Hitting CA$0.27, Gold Strike Resources Insiders Still Sold Too Soon
Even though Gold Strike Resources Corp. (CVE:GSR) has fallen by 13% over the past week , insiders who sold CA$106k worth of stock over the past year have had less luck. Insiders might have been better off holding onto their shares, given that the average selling price of CA$0.56 is still below the current share price.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Gold Strike Resources Insider Transactions Over The Last Year
The CEO & Director, Peter Miles, made the biggest insider sale in the last 12 months. That single transaction was for CA$78k worth of shares at a price of CA$0.56 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of CA$0.27. So it is hard to draw any strong conclusion from it. Peter Miles was the only individual insider to sell shares in the last twelve months.
In the last twelve months insiders purchased 327.00k shares for CA$51k. But they sold 190.00k shares for CA$106k. Peter Miles sold a total of 190.00k shares over the year at an average price of CA$0.56. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Check out our latest analysis for Gold Strike Resources
I will like Gold Strike Resources 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.
Insider Ownership Of Gold Strike Resources
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Our data suggests Gold Strike Resources insiders own 3.9% of the company, worth about CA$1.8m. However, it's possible that insiders might have an indirect interest through a more complex structure. I generally like to see higher levels of ownership.
So What Do The Gold Strike Resources Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. Our analysis of Gold Strike Resources insider transactions leaves us unenthusiastic. And we're not picking up on high enough insider ownership to give us any comfort. 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. Case in point: We've spotted 4 warning signs for Gold Strike Resources you should be aware of, and 3 of them shouldn't be ignored.
Of course Gold Strike 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.