Even if it's not a huge purchase, we think it was good to see that Douglas Kirwin, the Non-Executive Director of Southern Gold Limited (ASX:SAU) recently shelled out AU$69k to buy stock, at AU$0.023 per share. Even though that isn't a massive buy, it did increase their holding by 900%, which is arguably a good sign.

View our latest analysis for Southern Gold

Southern Gold Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Paul Shadbolt for AU$496k worth of shares, at about AU$0.12 per share. That means that an insider was happy to buy shares at above the current price of AU$0.027. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. Notably Paul Shadbolt was also the biggest seller.

In the last twelve months insiders purchased 9.75m shares for AU$632k. But they sold 2.31m shares for AU$290k. In total, Southern Gold insiders bought more than they sold over the last year. Their average price was about AU$0.065. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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

Insider Ownership Of Southern Gold

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. From our data, it seems that Southern Gold insiders own 12% of the company, worth about AU$982k. But they may have an indirect interest through a corporate structure that we haven't picked up on. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Southern Gold Tell Us?

The recent insider purchases are heartening. 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 Southern Gold insiders are expecting a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Southern Gold is showing 5 warning signs in our investment analysis, and 3 of those are significant...

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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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