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It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Parkit Enterprise Inc.'s (CVE:PKT) case, it's fantastic news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Parkit Enterprise
Parkit Enterprise Insider Transactions Over The Last Year
In fact, the recent purchase by Steven Scott was the biggest purchase of Parkit Enterprise 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$0.55. 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 Parkit Enterprise share holders is that insiders were buying at near the current price.
In the last twelve months insiders purchased 731.05k shares for CA$392k. But they sold 30.00k shares for CA$19k. In the last twelve months there was more buying than selling by Parkit Enterprise insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Parkit Enterprise is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders At Parkit Enterprise Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Parkit Enterprise. We can see that Chairman Steven Scott paid CA$328k for shares in the company. No-one sold. That shows some optimism about the company's future.
Insider Ownership Of Parkit Enterprise
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 23% of Parkit Enterprise shares, worth about CA$28m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.