Whilst it may not be a huge deal, we thought it was good to see that the Nighthawk Gold Corp. (TSE:NHK) Independent Non-Executive Chairman, Morris Prychidny, recently bought CA$81k worth of stock, for CA$0.81 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 13%.
Nighthawk Gold Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by President Keyvan Salehi for CA$86k worth of shares, at about CA$1.15 per share. That means that an insider was happy to buy shares at above the current price of CA$0.58. Their view may have changed since then, but at least it shows they felt optimistic at the time. 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.
In the last twelve months Nighthawk Gold insiders were buying shares, but not selling. The average buy price was around CA$0.87. These transactions suggest that insiders have considered the current price attractive. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of Nighthawk Gold
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own CA$1.5m worth of Nighthawk Gold stock, about 2.1% of the company. I generally like to see higher levels of ownership.
So What Does This Data Suggest About Nighthawk Gold Insiders?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Nighthawk Gold insiders are reasonably well aligned, and optimistic for the 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. To that end, you should learn about the 6 warning signs we've spotted with Nighthawk Gold (including 4 which make us uncomfortable).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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, but not derivative transactions.
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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.