Brad Dunkley Bought 16% More Shares In Parkit Enterprise

Those following along with Parkit Enterprise Inc. (CVE:PKT) will no doubt be intrigued by the recent purchase of shares by Brad Dunkley, Independent Director of the company, who spent a stonking CA$917k on stock at an average price of CA$0.43. Not only is that a big swing, but it increased their holding size by 16%, which is definitely great to see.

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Parkit Enterprise Insider Transactions Over The Last Year

Notably, that recent purchase by Brad Dunkley is the biggest insider purchase of Parkit Enterprise shares that we've seen in the last year. That means that even when the share price was higher than CA$0.42 (the recent price), an insider wanted to purchase shares. 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months insiders purchased 4.94m shares for CA$2.6m. But they sold 153.50k shares for CA$85k. Overall, Parkit Enterprise insiders were net buyers during the last year. They paid about CA$0.53 on average. I'd consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Parkit Enterprise

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Parkit Enterprise 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. Parkit Enterprise insiders own about CA$22m worth of shares. That equates to 24% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Parkit Enterprise Insiders?

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. When combined with notable insider ownership, these factors suggest Parkit Enterprise insiders are well aligned, and that they may think the share price is too low. 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. To that end, you should learn about the 3 warning signs we've spotted with Parkit Enterprise (including 2 which are concerning).

But note: Parkit Enterprise may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.