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Insiders who bought Black Dragon Gold Corp. (ASX:BDG) in the last 12 months may probably not pay attention to the stock's recent 37% drop. After taking the recent loss into consideration, the CA$320.0k worth of stock they bought is now worth CA$624.0k, indicating that their investment yielded a positive return.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Black Dragon Gold
The Last 12 Months Of Insider Transactions At Black Dragon Gold
Over the last year, we can see that the biggest insider purchase was by Non-Executive Director Paul Cronin for AU$200k worth of shares, at about AU$0.02 per share. We do like to see buying, but this purchase was made at well below the current price of AU$0.039. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
While Black Dragon Gold insiders bought shares during the last year, they didn't sell. 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!
Black Dragon Gold is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 18% of Black Dragon Gold shares, worth about AU$1.9m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Black Dragon Gold Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Black Dragon Gold insiders are doubting the company, and they do own shares. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 4 warning signs for Black Dragon Gold you should be aware of, and 3 of them don't sit too well with us.