Insider Trading Report: Vista Gold Corp (VGZ)

Douglas Tobler, CFO of Vista Gold Corp (VGZ), recently picked up 2,500 additional shares. The buy increased his stake by 3.2 percent, and came to a total purchase price just over $3,100.

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  • This is the CFO’s third buy of the year. Other company insiders have made no changes to their holdings in either way since mid-2019. Before then, company insiders were likely to be heavy sellers of shares.

    Overall, company insiders own 3.6 percent of company shares. The junior gold mining company has seen shares rise about 35 percent in the past year, about in line with the S&P 500. Shares are still near their 52-week high, even with gold prices stalling out after a large rally last year.

    The company’s operations are largely in Australia.

    Action to take: Most junior gold mining companies see their shares move when the price of gold does, and the effect tends to be magnified in shares. While inflation expectations are high, which is typically good for gold, the expectation of higher interest rates in the near-future are weighing on gold’s price now.

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  • However, smaller gold companies are also attractive prices for larger companies looking to add reserves. That, and the possibility of another rally in gold, make for an interesting buy up to $1.40 per share.

    Of the company’s limited options trades, the December $2.50 are the furthest-dated and lowest-strike price options. Trading with a bid/ask spread of $0.15, a rally in shares before the end of the year could lead to triple-digit returns.

     

    Disclosure: The author of this article has no position in the stock mentioned here, and does not intend to trade this company after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.

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