Nexsen Insiders Recover Some Losses, Which Stand At AU$66k
Insiders who bought AU$515.6k worth of Nexsen Limited (ASX:NXN) stock in the last year have seen some of their losses recouped as the stock gained 15% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling AU$66k.
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 Nexsen
Over the last year, we can see that the biggest insider purchase was by insider Peter Cook for AU$516k worth of shares, at about AU$0.18 per share. That means that even when the share price was higher than AU$0.15 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Peter Cook.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Check out our latest analysis for Nexsen
Nexsen 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 Of Nexsen
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. Nexsen insiders own 48% of the company, currently worth about AU$15m 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 Do The Nexsen Insider Transactions Indicate?
The fact that there have been no Nexsen insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Nexsen insiders feel good about the company's 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. At Simply Wall St, we've found that Nexsen has 3 warning signs (1 is a bit unpleasant!) that deserve your attention before going any further with your analysis.
Of course Nexsen 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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