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Looking at RTG Mining Inc.’s (TSE:RTG ) insider transactions over the last year, we can see that insiders were net buyers. That is, there were more number of shares purchased by insiders than there were sold.

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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Notably, that recent purchase by Richard Hains is the biggest insider purchase of RTG Mining shares that we’ve seen in the last year. So it’s clear an insider wanted to buy, at around the current price, which is CA$0.03. 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. While we always like to see insider buying, it’s less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for RTG Mining share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was Richard Hains. Notably Richard Hains was also the biggest seller.

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!

Check out our latest analysis for RTG Mining

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

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Based on our data, RTG Mining insiders have about 3.0% of the stock, worth approximately CA$1.7m. However, it’s possible that insiders might have an indirect interest through a more complex structure. I generally like to see higher levels of ownership.

The recent insider purchase is 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 RTG Mining 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 RTG Mining. Our analysis shows 4 warning signs for RTG Mining (3 shouldn’t be ignored!) and we strongly recommend you look at these before investing.

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.