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

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Galiano Gold

Galiano Gold Insider Transactions Over The Last Year

The Independent Chairman, Paul Wright, made the biggest insider sale in the last 12 months. That single transaction was for CA$535k worth of shares at a price of CA$2.41 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of CA$1.96. So it is hard to draw any strong conclusion from it. Notably Paul Wright was also the biggest buyer, having purchased CA$654k worth of shares.

In the last twelve months insiders purchased 442.07k shares for CA$654k. But insiders sold 315.00k shares worth CA$647k. In the last twelve months there was more buying than selling by Galiano Gold 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!

Galiano Gold is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders At Galiano Gold Have Bought Stock Recently

It's good to see that Galiano Gold insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought CA$112k worth of shares. This makes one think the business has some good points.

Does Galiano 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests Galiano Gold insiders own 0.5% of the company, worth about CA$2.6m. I generally like to see higher levels of ownership.

What Might The Insider Transactions At Galiano Gold Tell Us?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Galiano Gold insiders are expecting a bright future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 1 warning sign for Galiano Gold you should be aware of.

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 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.