Bullfrog Gold Gains 12%, Insider Trades Reap Benefit

Bullfrog Gold Corporation (CVE:FROG) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 12% resulting in a CA$1.3m addition to the company’s market value. In other words, the original CA$233.6k purchase is now worth CA$374.6k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Bullfrog Gold Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Chairman & CEO Ian Slater for CA$100k worth of shares, at about CA$0.10 per share. We do like to see buying, but this purchase was made at well below the current price of CA$0.14. Because the shares were purchased at a lower price, this particular buy doesn’t tell us much about how insiders feel about the current share price.

Over the last year, we can see that insiders have bought 2.58m shares worth CA$234k. On the other hand they divested 105.00k shares, for CA$7.4k. Overall, Bullfrog Gold insiders were net buyers during the last year. 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!

See our latest analysis for Bullfrog Gold

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Bullfrog Gold Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Bullfrog Gold insiders own 18% of the company, worth about CA$2.2m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.

So What Do The Bullfrog Gold Insider Transactions Indicate?

There haven’t been any insider transactions in the last three months — that doesn’t mean much. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Bullfrog Gold and we see no evidence to suggest they are worried about the future. So while it’s helpful to know what insiders are doing in terms of buying or selling, it’s also helpful to know the risks that a particular company is facing. In terms of investment risks, we’ve identified 6 warning signs with Bullfrog Gold and understanding these should be part of your investment process.

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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 of direct interests only, but not derivative transactions or indirect interests.

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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.