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Kevin Reid of Solstice Gold Corp. (CVE:SGC) Just Spent CA$85k On Shares

Whilst it may not be a huge deal, we thought it was good to see that Kevin Reid, who is a company insider, recently bought CA$85k worth of stock, for CA$0.04 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 17%.

Check out our latest analysis for Solstice Gold

The Last 12 Months Of Insider Transactions At Solstice Gold

Notably, that recent purchase by Kevin Reid is the biggest insider purchase of Solstice Gold shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of CA$0.04. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Solstice Gold share holders is that insiders were buying at near the current price.

In the last twelve months Solstice Gold insiders were buying shares, but not selling. Their average price was about CA$0.067. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

TSXV:SGC Recent Insider Trading March 30th 2020
TSXV:SGC Recent Insider Trading March 30th 2020

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

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 23% of Solstice Gold shares, worth about CA$634k. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Solstice Gold Tell Us?

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 last year, which makes us a little cautious. Insiders likely see value in Solstice Gold shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Solstice Gold. Our analysis shows 5 warning signs for Solstice Gold (3 are significant!) and we strongly recommend you look at them before investing.

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.