Christopher Reynolds, a director at Paramount Gold Nevada Corp (PZG), recently picked up 4,600 shares. The buy increased his stake by nearly 15 percent, and came to a total price of just under $4,000.
This marks the second insider buy this month, following a 2,000 share buy from another director back on October 1. Insiders have been buyers going further back over the past three years, with no insider sales.
Overall, company insiders own 19.5 percent of shares.
The gold exploration company has seen shares slide about 19 percent over the past year. It’s also been about a year since gold prices hit a new all-time high before pulling back, with the metal hanging out around $1,800 per ounce.
Action to take: The company looks interesting here, as gold has held up relatively well, and could be a potential winner if inflation rates stay higher for longer. And as a small explorer, the company could soar in value on a rich find or on an acquisition offer.
Investors may want to consider shares as an inflation hedge, with traders considering the upside potential in a move higher for gold. There are no options to trade on this stock given its low price. But that low price does make it priced like an option, just one without any time premium or concern over expiration.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.