Chief Operating Officer of ASA Gold and Precious Metals Picks Up 19% More Stock

Investors who take an interest in ASA Gold and Precious Metals Limited (NYSE:ASA) should definitely note that the Chief Operating Officer, Alexander Merk, recently paid US$20.17 per share to buy US$487k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 19%.

Check out our latest analysis for ASA Gold and Precious Metals

ASA Gold and Precious Metals Insider Transactions Over The Last Year

In fact, the recent purchase by Alexander Merk was the biggest purchase of ASA Gold and Precious Metals shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than US$20.22 (the recent price), an insider wanted to purchase shares. 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. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

While ASA Gold and Precious Metals 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!

ASA Gold and Precious Metals 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 Of ASA Gold and Precious Metals

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. Based on our data, ASA Gold and Precious Metals insiders have about 0.8% of the stock, worth approximately US$3.0m. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At ASA Gold and Precious Metals Tell Us?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that ASA Gold and Precious Metals insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing ASA Gold and Precious Metals. When we did our research, we found 3 warning signs for ASA Gold and Precious Metals (1 shouldn't be ignored!) that we believe deserve your full attention.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.