Insiders who bought CA$600k worth of Black Dragon Gold Corp. (ASX:BDG) stock in the last year recovered part of their losses as the stock rose by 25% last week. However, total losses seen by insiders are still CA$68k but in since the time of purchase.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Black Dragon Gold

The Last 12 Months Of Insider Transactions At Black Dragon Gold

In the last twelve months, the biggest single purchase by an insider was when Non-Executive Chairman Paul Cronin bought AU$500k worth of shares at a price of AU$0.056 per share. That means that an insider was happy to buy shares at above the current price of AU$0.05. 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While Black Dragon 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. By clicking on the graph below, you can see the precise details of each insider transaction!

Black Dragon Gold is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Black Dragon 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. Black Dragon Gold insiders own about AU$1.5m worth of shares. That equates to 15% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Black Dragon Gold Insiders?

It doesn't really mean much that no insider has traded Black Dragon Gold shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Black Dragon Gold and we see no evidence to suggest they are worried about the future. While we like knowing 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. Be aware that Black Dragon Gold is showing 6 warning signs in our investment analysis, and 5 of those make us uncomfortable...

Of course Black Dragon Gold may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

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