Prodigy Gold's Market Cap Up AU$1.6m Following Year Of Insider Stock Buying

Prodigy Gold NL (ASX:PRX) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 25% resulting in a AU$1.6m addition to the company’s market value. In other words, the original AU$644.8k purchase is now worth AU$808.5k.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Prodigy Gold

Prodigy Gold Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Charles Arve for AU$462k worth of shares, at about AU$0.0019 per share. Even though the purchase was made at a significantly lower price than the recent price (AU$0.0025), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While Prodigy Gold insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Prodigy 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.

Does Prodigy Gold Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Prodigy Gold insiders own 18% of the company, worth about AU$1.1m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Prodigy Gold Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Prodigy Gold insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 6 warning signs for Prodigy Gold you should know about.

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 of direct interests only, but not derivative transactions or indirect interests.

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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.