Multiple insiders secured a larger position in Nevada King Gold Corp. (CVE:NKG) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.

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.

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Nevada King Gold Insider Transactions Over The Last Year

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 above the current price of CA$0.24. 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. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Happily, we note that in the last year insiders paid CA$18m for 67.75m shares. On the other hand they divested 20.00m shares, for CA$5.0m. In the last twelve months there was more buying than selling by Nevada King Gold insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Nevada King Gold

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Insiders At Nevada King Gold Have Bought Stock Recently

At Nevada King Gold,over the last quarter, we have observed quite a lot more insider buying than insider selling. In total, two insiders bought CA$12m worth of shares in that time. But we did see Founder Collin Kettell sell shares worth CA$5.0m. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Nevada King Gold insiders own 38% of the company, worth about CA$38m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.