It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Wesdome Gold Mines Ltd.'s (TSE:WDO) case, it's fantastic news for shareholders.

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.

View our latest analysis for Wesdome Gold Mines

The Last 12 Months Of Insider Transactions At Wesdome Gold Mines

In the last twelve months, the biggest single sale by an insider was when the Independent Director, Charles Main, sold CA$174k worth of shares at a price of CA$8.69 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of CA$7.57. So it is hard to draw any strong conclusion from it.

In the last twelve months insiders purchased 90.00k shares for CA$642k. On the other hand they divested 39.01k shares, for CA$335k. In the last twelve months there was more buying than selling by Wesdome Gold Mines insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Wesdome Gold Mines Insiders Bought Stock Recently

Over the last quarter, Wesdome Gold Mines insiders have spent a meaningful amount on shares. Overall, five insiders shelled out CA$319k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.

Insider Ownership Of Wesdome Gold Mines

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, Wesdome Gold Mines insiders have about 0.3% of the stock, worth approximately CA$3.8m. I generally like to see higher levels of ownership.

What Might The Insider Transactions At Wesdome Gold Mines Tell Us?

The recent insider purchases are heartening. 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 Wesdome Gold Mines 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 Wesdome Gold Mines. At Simply Wall St, we found 1 warning sign for Wesdome Gold Mines that deserve your attention before buying any shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.