Institutions that hold the majority stakes of Greatland Gold PLC not only enjoy the company’s ownership but their trading decisions can render the stocks vulnerable and impact the GGP share price. Institutional investors hold 48% of shares. The retail and individual investors take cues from the decisions taken by the controlling institutions. Greatland Gold PLC explores precious and base metals and their development in the UK and Australia. With the company posting a loss of 11 million GBX on June 30, 2022, investors wonder how long the company will take to post a profit. Perhaps, a bigger question investors seek to answer is when the company will break even.
Investors’ Concern – The Slide in GGP Share Price
From a high of £12.2 on June 06, 2022, the current share price GGP is now hovering between £7 and £8 and closed at £7.78 on June 02, 2023. A drastic decline of 36.22% has left individual and retail investors worried as they are keen to see better company performance at the bourses. It is important to understand how much the company’s performance is responsible for the slide and whether there are other reasons for it.
It happened once in 2022 when Greatland Gold’s share prices came to a standstill when the company announced the results of its drilling campaign at the Scallywag project in Western Australia. During that time GGP shares fell into the negative territory after a brief spike of 2.1%. Another cause of worry for investors at that time was the announcement of the half-yearly results that did not show revenue generation, as all of the company’s projects were work-in-progress.
More Reasons to Worry
Besides the company’s activities that impact GGP share price LSE, another factor can be a red flag for investors. The trading activities of insiders who hold significant company shares are always on the watch list of retail investors. Insider transactions reflect their sentiments about the company, both good and bad. When most insiders are on a buying spree, it sends positive signals about the company’s growing strength that generate investor confidence. On the other hand, when the majority of insiders start selling the company’s stock it can be a red flag for other investors.
The worrisome news is that several insiders have been steadily selling their stocks over the past year, amounting to a significant stake that dented investor interests. In Greatland Gold’s case, multiple insiders have been selling stock yearly at regular intervals. The biggest insider sale in the last 12 months was that undertaken by Michael Borrelli, Senior Non-Executive Director when he sold stocks worth £ 1.6 million priced at £0.083 each.
Although insider selling usually frightens investors especially if the selling price is lower than the current market price of shares, the instance cited above might be fine. The reason is that the shares went for a price slightly higher than the current GGP share price of £0.078.
