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Investors who take an interest in Nuix Limited (ASX:NXL) should definitely note that the Global CEO & Executive Director, Jonathan Rubinsztein, recently paid AU$0.67 per share to buy AU$236k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 233%, potentially signalling some real optimism.
View our latest analysis for Nuix
The Last 12 Months Of Insider Transactions At Nuix
In fact, the recent purchase by Jonathan Rubinsztein was the biggest purchase of Nuix shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.69). 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 insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Nuix insiders may have bought shares in the last year, but they didn't sell any. They paid about AU$1.28 on average. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Nuix is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
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. We usually like to see fairly high levels of insider ownership. Based on our data, Nuix insiders have about 1.9% of the stock, worth approximately AU$4.2m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We consider this fairly low insider ownership.
So What Do The Nuix Insider Transactions Indicate?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Nuix insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Nuix. At Simply Wall St, we found 1 warning sign for Nuix that deserve your attention before buying any shares.