Last week, Canadian Gold Corp. (CVE:CGC) insiders who purchased shares over the past 12 months saw significant gains as the stock surged 11%, boosting the company’s market capitalization by CA$3.8 million. Their investments, which initially totaled CA$150,000, are now worth CA$205,400—a 37% return on their original purchase.
While insider transactions should not be the sole factor in investment decisions, they can provide valuable insights into how those closest to the company perceive its potential.
Canadian Gold Insider Transactions Over the Last Year
Among the most notable purchases, insider Robert McEwen invested CA$100,000 in Canadian Gold shares at an average price of CA$0.14 per share—a price notably below the current CA$0.20 level. While this suggests insiders viewed the stock as undervalued at lower prices, it does not necessarily indicate their perspective on its present valuation.
Notably, no insider sales have been recorded over the past year. This suggests confidence among insiders, though investors may still want to analyze additional financial indicators before making decisions.
(For a detailed breakdown of insider transactions—including who bought shares, at what price, and when—click the interactive chart below.)
For those who favor lesser-known investment opportunities, there are plenty of other companies where insiders are actively buying shares. Check out this free list of insider-backed companies.
Does Canadian Gold Have Strong Insider Ownership?
For retail investors, insider ownership can be a key indicator of long-term commitment. Generally, the higher the percentage of shares owned by insiders, the greater their incentive to drive the company’s success.
At Canadian Gold, insiders collectively hold approximately CA$13 million worth of shares, representing 39% ownership. While higher insider ownership levels exist in other companies, this significant stake aligns insiders’ interests with those of other shareholders.
What Do Canadian Gold’s Insider Transactions Tell Us?
Although no insider activity was recorded in the last quarter, year-long purchasing trends remain encouraging. Insiders have demonstrated confidence in the company by accumulating shares, and their strong ownership stake suggests a long-term commitment.
However, investors should also consider potential risks. Our research has uncovered four warning signs (including three significant ones) that could impact Canadian Gold’s outlook. Before investing, it may be prudent to evaluate these risks.
Looking for better investment opportunities? Canadian Gold may not be the best stock to buy, so you might want to explore this free list of high-quality companies with strong growth potential.
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