Insider Trading Report: Vista Gold Corp (VGZ)

Douglas Tobler, the CFO of Vista Gold Corp (VGZ), recently bought 10,000 more shares. The buy increased his stake by over 12 percent, and came to a total purchase price of $11,000 exactly.

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  • He was joined by director Tracy Stevenson, who picked up 50,000 shares. That came to a total purchase price of $55,000, and increased the director’s stake by over 14 percent. Overall, insiders own 3.6 percent of company shares.

    Tobler has been an active buyer in recent months, with buys in March, May and June, all for smaller amounts than this recent buy. The last insider sale at the company occurred in mid-2019.

    The buy occurs as shares have been knocked down heavily in recent sessions, after rallying as high as $1.38 in mid-June.

    Gold prices have been trending somewhat higher at the same time, which tends to be a driver of gold mining stocks. This week’s recurring inflationary fears haven’t yet sparked a move higher, but may create demand for a strong inflation hedge among traders.

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  • Action to take: The gold mine is in an early stage and the valuation is potentially attractive, especially considering the speed and severity of the recent selloff, which was driven by a capital raise.

    That makes shares attractive, especially with an inexpensive price under $1.00 per share. At that price, even traders may want shares, to avoid the decaying time premium and other factors that involve options.

    That’s especially true given that the lowest-priced options available have a strike price starting at $2.50, a price unlikely to move in-the-money.

     

    Disclosure: The author of this article has no position in the company mentioned here, but may make a trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.

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