Gold price

Independent Chairman Paul Wright Just Bought 71% More Shares In Galiano Gold Inc. (TSE:GAU)

Sep 23, 2022

Whilst it may not be a huge deal, we thought it was good to see that the Galiano Gold Inc. (TSE:GAU) Independent Chairman, Paul Wright, recently bought CA$62k worth of stock, for CA$0.50 per share. Even though that isn't a massive buy, it did increase their holding by 71%, which is arguably a good sign.

Check out our latest analysis for Galiano Gold

Galiano Gold Insider Transactions Over The Last Year

Notably, that recent purchase by Independent Chairman Paul Wright was not the only time they bought Galiano Gold shares this year. They previously made an even bigger purchase of CA$67k worth of shares at a price of CA$0.67 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.54). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months insiders purchased 313.98k shares for CA$187k. But insiders sold 179.81k shares worth CA$134k. In the last twelve months there was more buying than selling by Galiano Gold insiders. Their average price was about CA$0.60. These transactions suggest that insiders have considered the current price attractive. 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!

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insider-trading-volume

Galiano Gold is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Galiano Gold Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company 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. Our data isn't picking up on much insider ownership at Galiano Gold, though insiders do hold about CA$346k worth of shares. It's always possible we are missing something but from our data, it looks like insider ownership is minimal.

So What Does This Data Suggest About Galiano Gold Insiders?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Galiano Gold insiders are expecting a bright future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we've found that Galiano Gold has 3 warning signs (1 doesn't sit too well with us!) that deserve your attention before going any further with your analysis.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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, but not derivative transactions.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.


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