Native Mineral Resources Holdings Insiders Land Bargain With Gains Of AU$2.6m
Insiders who purchased Native Mineral Resources Holdings Limited (ASX:NMR) shares in the past 12 months are unlikely to be deeply impacted by the stock's 14% decline over the past week. Even after accounting for the recent loss, the AU$6.23m worth of stock purchased by them is now worth AU$8.86m or in other words, their investment continues to give good returns.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Native Mineral Resources Holdings
The MD, CEO & Director, Blake Cannavo, made the biggest insider sale in the last 12 months. That single transaction was for AU$3.2m worth of shares at a price of AU$0.16 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (AU$0.057). So it may not tell us anything about how insiders feel about the current share price. Blake Cannavo was the only individual insider to sell over the last year. Notably Blake Cannavo was also the biggest buyer, having purchased AU$6.2m worth of shares.
In the last twelve months insiders purchased 155.46m shares for AU$6.2m. But they sold 20.00m shares for AU$3.2m. Overall, Native Mineral Resources Holdings insiders were net buyers during the last year. 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!
View our latest analysis for Native Mineral Resources Holdings
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).
Native Mineral Resources Holdings Insiders Bought Stock Recently
We saw some Native Mineral Resources Holdings insider buying shares in the last three months. MD, CEO & Director Blake Cannavo purchased AU$19k worth of shares in that period. We like it when there are only buyers, and no sellers. However, in this case the amount invested recently is quite small.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Native Mineral Resources Holdings insiders own about AU$17m worth of shares. That equates to 31% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Native Mineral Resources Holdings Insiders?
We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Native Mineral Resources Holdings and we see no evidence to suggest they are worried about the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 5 warning signs (3 shouldn't be ignored!) that you ought to be aware of before buying any shares in Native Mineral Resources Holdings.
Of course Native Mineral Resources Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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.