Nevada King Gold Insiders Placed Bullish Bets Worth CA$6.47m
Quite a few insiders have dramatically grown their holdings in Nevada King Gold Corp. (CVE:NKG) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Nevada King Gold
The Last 12 Months Of Insider Transactions At Nevada King Gold
In fact, the recent purchase by Michael Parker was the biggest purchase of Nevada King Gold shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of CA$0.36. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Nevada King Gold share holders is that insiders were buying at near the current price.
In the last twelve months insiders purchased 17.04m shares for CA$6.5m. On the other hand they divested 1.65m shares, for CA$739k. Overall, Nevada King Gold insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Nevada King Gold is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At Nevada King Gold Have Bought Stock Recently
Over the last quarter, Nevada King Gold insiders have spent a meaningful amount on shares. insider Michael Parker spent CA$4.2m on stock, and there wasn't any selling. That shows some optimism about the company's future.
Insider Ownership Of Nevada King Gold
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 27% of Nevada King Gold shares, worth about CA$35m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Nevada King Gold Insiders?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Nevada King Gold we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 4 warning signs for Nevada King Gold (1 is concerning!) that we believe deserve your full attention.
But note: Nevada King Gold may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
