New Found Gold Corp. (CVE:NFG) shareholders (or potential shareholders) will be happy to see that insider Eric Sprott recently bought a whopping CA$8.8m worth of stock, at a price of CA$8.50. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 3.4%.
Check out our latest analysis for New Found Gold
The Last 12 Months Of Insider Transactions At New Found Gold
In fact, the recent purchase by insider Eric Sprott was not their only acquisition of New Found Gold shares this year. Earlier in the year, they paid CA$5.25 per share in a CA$14m purchase. We do like to see buying, but this purchase was made at well below the current price of CA$8.53. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Over the last year, we can see that insiders have bought 7.81m shares worth CA$51m. But they sold 2.02m shares for CA$10m. In total, New Found Gold insiders bought more than they sold over the last year. Their average price was about CA$6.47. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. 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!
insider-trading-volume
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that New Found Gold insiders own 25% of the company, worth about CA$346m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.