Independent Chairman Graham Stewart Just Bought 14% More Shares In AEX Gold Inc. (CVE:AEX)

Potential AEX Gold Inc. (CVE:AEX) shareholders may wish to note that the Independent Chairman, Graham Stewart, recently bought CA$171k worth of stock, paying CA$0.77 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 14%.

Check out our latest analysis for AEX Gold

AEX Gold Insider Transactions Over The Last Year

Notably, that recent purchase by Graham Stewart is the biggest insider purchase of AEX Gold shares that we've seen in the last year. That implies that an insider found the current price of CA$0.92 per share to be enticing. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for AEX Gold share holders is that insiders were buying at near the current price.

AEX Gold insiders may have bought shares in the last year, but they didn't sell any. Their average price was about CA$0.69. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. 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!

AEX Gold is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does AEX Gold Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company 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. Our data suggests AEX Gold insiders own 1.9% of the company, worth about CA$3.1m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At AEX 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. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that AEX Gold insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing AEX Gold. For example, AEX Gold has 3 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.

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.

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. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.