Insider Buyers Lose $52k as Patagonia Gold Shares Drop $2.3m

Insider Buyers Lose US$52k As Patagonia Gold Sheds CA$2.3m

Insiders who acquired US$118.0k worth of Patagonia Gold Corp.’s (CVE:PGDC) stock at an average price of US$0.062 in the past 12 months may be disappointed by the recent 13% price decline. Insiders typically buy with the hope that their investments will increase in value over time. However, recent losses have reduced their initial investment to US$66.5k, which is less than ideal. While insider transactions are not the most crucial factor in long-term investing, it’s unwise to completely disregard them.

Taking a closer look at the last 12 months of insider transactions at Patagonia Gold, we find that Independent Director Timothy Hunt made the largest insider purchase. He bought CA$93k worth of shares at a price of CA$0.11 each. This indicates confidence in the company’s future, even when the share price was higher than it is now at CA$0.035. Generally, when insiders buy shares at prices above the current market value, it suggests they see the stock as undervalued.

In the past year, insiders have bought 1.90m shares worth CA$118k, while selling 5.00k shares for CA$100.0. Overall, Patagonia Gold insiders were net buyers, with an average purchase price of around CA$0.062. This demonstrates that insiders see value at the current prices. Insider ownership is also significant, with insiders owning 65% of the company, valued at about CA$11m based on recent share prices. This high insider ownership aligns management incentives with those of other shareholders.

While recent insider buying has been limited, with only CA$2.2k worth of shares purchased in the last three months, the transactions over the last year paint a more positive picture. It would be encouraging to see more insider buying, but overall, it seems that Patagonia Gold insiders are optimistic and well aligned with the company’s future. This information, combined with other factors, can help build a thesis about the stock. However, it’s essential to be aware of potential risks, as with any investment.

In conclusion, while Patagonia Gold may not be the best stock to buy for everyone, these insider transactions provide valuable insights. Insider buying suggests confidence in the company’s future, and high insider ownership indicates alignment with shareholders. It’s always essential to conduct thorough research and consider all factors before making investment decisions.