Nictus Insiders May Regret Not Buying More, Market Cap Hits R187m
Nictus Limited (JSE:NCS) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 45% resulting in a R58m addition to the company’s market value. In other words, the original R1.26m purchase is now worth R2.29m.
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.
Nictus Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Executive Group MD & Executive Director Gerard de V. Tromp for R1.2m worth of shares, at about R1.92 per share. We do like to see buying, but this purchase was made at well below the current price of R3.50. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
In the last twelve months Nictus insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for Nictus
Nictus 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
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Nictus insiders own 75% of the company, currently worth about R139m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Nictus Insiders?
It doesn't really mean much that no insider has traded Nictus shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like Nictus insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Nictus. To that end, you should learn about the 4 warning signs we've spotted with Nictus (including 1 which is concerning).
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.