Those following along with Barrick Gold Corporation (TSE:ABX) will no doubt be intrigued by the recent purchase of shares by Dennis Bristow, President of the company, who spent a stonking CA$5.9m on stock at an average price of CA$25.72. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 3.6%.

Check out our latest analysis for Barrick Gold

Barrick Gold Insider Transactions Over The Last Year

Notably, that recent purchase by Dennis Bristow is the biggest insider purchase of Barrick Gold shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$25.67). 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. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Over the last year, we can see that insiders have bought 1.21m shares worth CA$31m. But they sold 619.04k shares for CA$16m. In total, Barrick Gold insiders bought more than they sold over the last year. 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!

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.

Insider Ownership Of Barrick Gold

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Barrick Gold insiders own about CA$322m worth of shares (which is 0.7% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Barrick Gold Insiders?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Barrick Gold. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Barrick Gold. For example - Barrick Gold has 1 warning sign we think you should be aware of.

But note: Barrick Gold may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.