Douglas Tobler, CFO of Vista Gold Corp (VGZ) recently picked up 3,000 shares. The buy increased his stake by nearly 4 percent, and came to a total purchase price of over $3,200.
He has been a repeated buyer over the past few months, and the only insider to make any transactions. The last insider transactions occurred in June 2019, and prior insider activities have been sales only.
Overall, insiders own over 3 percent of the company.
Shares of Vista have traded between $0.90 and $1.20 in the past 6 months as gold prices have fallen into a sideways trend since topping out last summer. Shares are still up about 40 percent over the past year.
As an exploration company, shares aren’t profitable. If the company can find a large deposit of gold or precious metals, however, it could sell a stake to a larger gold mining company to work the site.
Action to take: Gold mining companies tend to be leveraged to the price of gold. Recently, gold prices have started to show some signs of life again. Small gold mining stocks like Vista can provide a leveraged return compared to just the return of gold itself.
That makes shares attractive here in the low $1 range, with an eye towards a jump higher on a rising price in gold. Traders have some options available, but with the lowest strike price of $2.50, shares would need to more than double for that kind of option trade to pay off.
Disclosure: The author of this article has no positions in the stock mentioned here, and does not intend to make a trade on this company after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.