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.

View our latest analysis for Nevada King Gold

Nevada King Gold Insider Transactions Over The Last Year

The insider Michael Parker made the biggest insider purchase in the last 12 months. That single transaction was for CA$4.2m worth of shares at a price of CA$0.35 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.33). 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. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While Nevada King Gold insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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 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.

Nevada King Gold Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Nevada King Gold. We can see that insider Michael Parker paid CA$1.1m for shares in the company. No-one sold. This is a positive in our book as it implies some confidence.

Does Nevada King Gold Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 34% of Nevada King Gold shares, 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.

So What Do The Nevada King Gold Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Insiders likely see value in Nevada King Gold shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Nevada King Gold. Our analysis shows 4 warning signs for Nevada King Gold (1 is potentially serious!) and we strongly recommend you look at them before investing.