P2 Gold Inc. (CVE:PGLD) Principal and Exploration Manager Kenneth McNaughton Just Bought 8.6% More Shares

Potential P2 Gold Inc. (CVE: PGLD) shareholders may want to note that Director and Chief Exploration Officer Kenneth McNaughton recently purchased C$400,000 worth of shares, paying C$0.50 for each share. While a very decent buy in our eyes, it was proportionately a bit modest, increasing their stake by just 8.6%.

See our latest analysis for P2 Gold

The last 12 months of insider trading at P2 Gold

In fact, the recent purchase by Kenneth McNaughton was the largest purchase of P2 Gold shares by an insider in the last twelve months, according to our records. This means that an insider was happy to buy shares above the current price of C$0.45. Although their perspective has changed since the purchase, it at least suggests they have confidence in the company’s future. In our view, the price an insider pays for a stock is very important. It is generally more encouraging if they paid above the current price, as this suggests that they perceived value even at higher levels.

Fortunately, we note that last year insiders paid C$1.0 million for 2.01 million shares. But they sold 30,000 shares for C$20,000. Overall, P2 Gold insiders have been net buyers over the past year. The chart below shows insider trading (by companies and individuals) over the past year. If you want to know exactly who sold, how much and when, just click on the chart below!

volume-of-insider-trading

There are many other companies whose insiders buy shares. You probably do not want to miss this free list of growing companies insiders are buying.

Insider ownership

Many investors like to check how much a company is owned by insiders. I think it’s a good sign if insiders have a significant number of shares in the company. Insiders of P2 Gold own approximately C$8.2 million in stock. This equals 26% of the business. We have certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest an alignment between insiders and other shareholders.

So what does this data suggest about P2 Gold insiders?

It is certainly positive to see the recent insider buying. And longer-term insider trading also gives us confidence. However, we note that the company has not made a profit in the last twelve months, which makes us cautious. Insiders likely see value in P2 Gold stock, given these transactions (as well as notable insider ownership of the company). So these insider trades can help us build a thesis on the stock, but it’s also helpful to know the risks this company faces. Be aware that P2 Gold watch 6 warning signs in our investment analysisand 3 of them cannot be ignored…

But note: P2 Gold may not be the best stock to buy. So take a look at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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