Each piece of insider buying activity is worth the attention of the investment community regardless of the number of shares bought by corporate insiders. Even the buying conducted by freshly-appointed Board members and corporate executives to meet stock ownership guidelines represents a positive indicator. Why so? Because the whole purpose of these stock ownership guidelines involves aligning the executive team’s interests with those of shareholders.
Nonetheless, retail investors should not blindly mimic each insider purchase – insiders may be wrong on some occasions like any other human being. Instead, investors should incorporate insider trading metrics into their securities selection and research process, a practice employed by successful hedge fund vehicles as well. Insider Monkey does not attempt to propagate investment opportunities through our daily insider trading articles – this is outside our scope. Insider Monkey’s underlying purpose involves helping investors and other stock market participants make more informed decisions. That being said, let’s have a look at a set of insider purchases and sales reported with the U.S. Securities and Exchange Commission on Wednesday.
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Board Member at Low-Priced Exploration Stage Mining Company Buys Shares
Let’s begin our discussion by analyzing some mild insider buying recently observed at Paramount Gold Nevada Corp (NYSEMKT:PZG). Board member Christopher J. Reynolds purchased 10,000 shares on Wednesday at a price tag of $1.86 each, a purchase that boosted his holding to 11,500 shares.
The emerging growth company engaged in the business of acquiring, exploring and developing precious metal projects in the United States has seen the value of its shares advance by 74% since the beginning of the year. As a non-producing company, Paramount Gold Nevada Corp (NYSEMKT:PZG) owns advanced stage exploration projects in the states of Nevada and Oregon. In early November, the company said its received approval of its drill program at the 100%-owned Grassy Mountain Gold Project in Eastern Oregon, which is an important component of the Pre-Feasibility Study commenced in late August. This PFS involves a detailed analysis of all major parameters involved in constructing and operating a mine, including projected capital and operating costs, production levels and expected returns under various scenarios. Jim Simons’ Renaissance Technologies LLC had 178,900 shares of Paramount Gold Nevada Corp (NYSEMKT:PZG) in its portfolio at the end of the third quarter.
Let’s head to the next two pages of this article, where we discuss other insider transactions reported with the SEC on Wednesday.