In This Article:
Those following along with Nevada King Gold Corp. (CVE:NKG) will no doubt be intrigued by the recent purchase of shares by insider Michael Parker, who spent a stonking CA$3.6m on stock at an average price of CA$0.34. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 21%.
Check out our latest analysis for Nevada King Gold
Nevada King Gold Insider Transactions Over The Last Year
Notably, that recent purchase by insider Michael Parker was not the only time they bought Nevada King Gold shares this year. They previously made an even bigger purchase of CA$4.2m worth of shares at a price of CA$0.35 per share. That means that even when the share price was higher than CA$0.28 (the recent price), an insider wanted to purchase shares. 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. We always take careful note of the price insiders pay when purchasing shares. 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.
Nevada King Gold insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 35% of Nevada King Gold shares, worth about CA$38m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Nevada King Gold Insiders?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Nevada King Gold shares, given these transactions (along with notable insider ownership of the company). While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. When we did our research, we found 4 warning signs for Nevada King Gold (1 is significant!) that we believe deserve your full attention.