Insiders who purchased AU$281k worth of WIA Gold Limited (ASX:WIA) shares over the past year recouped some of their losses after price gained 21% last week. However, total losses seen by insiders are still AU$44k since the time of purchase.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for WIA Gold

The Last 12 Months Of Insider Transactions At WIA Gold

In the last twelve months, the biggest single purchase by an insider was when insider Josef El-Raghy bought AU$215k worth of shares at a price of AU$0.039 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.035). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months WIA Gold insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

Insiders At WIA Gold Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at WIA Gold. Not only was there no selling that we can see, but they collectively bought AU$236k worth of shares. That shows some optimism about the company's future.

Insider Ownership Of WIA Gold

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Our data indicates that WIA Gold insiders own about AU$2.2m worth of shares (which is 11% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At WIA Gold Tell Us?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on WIA Gold stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 5 warning signs for WIA Gold you should be aware of, and 3 of them are significant.

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.

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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