As Galileo Mining Ltd (ASX:GAL) gains 170%, insiders who bought last year might wish they had bet higher

Last week, Galileo Mining Ltd (ASX:GAL) insiders, who had purchased shares in the previous 12 months were generously rewarded. Shares rose 170% in the past week, leading to an A$57 million increase in the company’s market value. In other words, the original purchase of AU$94,000 is now worth AU$189,000.

While insider trading isn’t the most important thing when it comes to long-term investing, we think it makes perfect sense to keep tabs on what insiders are doing.

Check out our latest analysis for Galileo Mining

The last 12 months of insider trading at Galileo Mining

Over the past year, we can see that the biggest insider buy was made by independent non-executive director Noel O’Brien for AU$94,000 worth of shares, at around AU$0.27 per share. We like to see buying, but this purchase was made well below the current price of AU$0.54. Because it occurred at a lower valuation, that tells us little about whether insiders might find today’s price attractive.

You can see a visual representation of insider trading (by companies and individuals) over the past 12 months, below. By clicking on the graph below, you will be able to see the precise detail of each insider trade!

ASX:GAL Insider Trading Volume May 13, 2022

Galileo Mining isn’t the only stock insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider buying, might be just the ticket.

Insider ownership

Many investors like to check how much a company is owned by insiders. We generally like to see fairly high levels of insider ownership. According to our data, insiders hold A$2.7 million worth of Galileo Mining shares, or about 2.9% of the company. However, insiders may have an indirect interest through a more complex structure. We consider this to be fairly weak insider property.

So what does this data suggest about Galileo Mining Insiders?

The fact that there have been no Galileo Mining insider trades recently certainly doesn’t bother us. But insiders have shown more appetite for the stock over the past year. We would like to see larger individual holdings. However, we see nothing to suggest Galileo Mining insiders doubt the company. So, while it is useful to know what insiders are doing in terms of buying or selling, it is also useful to know the risks that a particular company faces. Our analysis shows 5 warning signs for Galileo Mining (2 make us uncomfortable!) and we strongly recommend that you consult them before investing.

If you’d rather check out another company – one with potentially superior finances – then don’t miss this free list of attractive companies, which have a high return on equity and low debt.

For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.