It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in SolGold Plc's (LON:SOLG) case, it's fantastic news for shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for SolGold

SolGold Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when CEO & Director Scott Caldwell bought UK￡94k worth of shares at a price of UK￡0.13 per share. That means that an insider was happy to buy shares at above the current price of UK￡0.096. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months insiders purchased 2.12m shares for UK￡229k. On the other hand they divested 900.00k shares, for UK￡95k. Overall, SolGold insiders were net buyers during the last year. They paid about UK￡0.11 on average. I'd consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insiders At SolGold Have Sold Stock Recently

There was substantially more insider selling, than buying, of SolGold shares over the last three months. We note Non-Executive Director Nicholas Mather cashed in UK￡95k worth of shares. Meanwhile insiders bought UK￡21k worth. Because the selling vastly outweighs the buying, we'd say this is a somewhat bearish sign.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 2.4% of SolGold shares, worth about UK￡6.9m, according to our data. But they may have an indirect interest through a corporate structure that we haven't picked up on. We do generally prefer see higher levels of insider ownership.