Insiders See US$1.23m Investment In Nakamoto Jump Last Week
Nakamoto Inc. (NASDAQ:NAKA) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 27%, resulting in a US$37m rise in the company's market capitalisation, translating to a gain of 88% on their initial investment. Put another way, the original US$1.23m acquisition is now worth US$2.30m.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Nakamoto
Over the last year, we can see that the biggest insider purchase was by Chairman & CEO David Forrest Bailey for US$993k worth of shares, at about US$5.79 per share. We do like to see buying, but this purchase was made at well below the current price of US$9.87. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
David Forrest Bailey purchased 233.35k shares over the year. The average price per share was US$5.26. The chart below shows insider transactions (by companies and individuals) over the last year. 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 Nakamoto
Nakamoto is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insiders At Nakamoto Have Bought Stock Recently
There has been significantly more insider buying, than selling, at Nakamoto, over the last three months. We can see that Chairman & CEO David Forrest Bailey paid US$235k for shares in the company. On the other hand, Chief Investment Officer & Director Tyler Matthew Evans netted US$7.5k by selling. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.
Insider Ownership Of Nakamoto
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Nakamoto insiders own about US$65m worth of shares. That equates to 36% 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.
What Might The Insider Transactions At Nakamoto Tell Us?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Nakamoto shares, given these transactions (along with notable insider ownership of the company). While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To that end, you should learn about the 4 warning signs we've spotted with Nakamoto (including 2 which are potentially serious).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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