Gary Goldberg, CEO of Newmont Mining, picked up 3,000 shares of stock, according to documents from the SEC, on May 2. The shares of stock average price are $32.81 per share. Before being the CEO earlier in March, Goldberg was the chief operating officer of $17 billion market cap gold and copper miner, for over a year. He was tracked because there was an out-performance effect for stocks bought by insiders.
Theoretical speaking an explanation for this is that insiders could only buy shares if they are assured in the stock’s predictions, or else desiring to branch out. Data of insider trading fillings shows that Goldberg bought 1,000 shares in March 2012 and after that an additional 1,000 shares in July, at these times the stock was down its levels that shows the Goldberg is not aware enough of the market’s worthy upsides.
Unambiguously, Newmont stated some numbers under analyst expectations. Revenue dropped by 19%, in the first quarter of this year. As the Company’s expenses didn’t change, that made a result of 41% decrease in the Company’s income.
Investors are careful when talking about gold, and with this insider purchase, which indeed gives an opportunity to be taken as a bull in gold, specifically when seeing how dependent Newmont is in the market, investors or traders pause to mention any of these companies as a buy. Waiting in these situations would be a good decision, a quarter or two to check in what way the many mining companies have performed in the current environment. As gold price is way below its levels these days.