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Over the last year, a good number of insiders have significantly increased their holdings in Northern Oil and Gas, Inc. (NYSE:NOG). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
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.
See our latest analysis for Northern Oil and Gas
The Last 12 Months Of Insider Transactions At Northern Oil and Gas
The Independent Chairperson of the Board of Directors Bahram Akradi made the biggest insider purchase in the last 12 months. That single transaction was for US$1.1m worth of shares at a price of US$28.03 each. That implies that an insider found the current price of US$29.39 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.
While Northern Oil and Gas insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Northern Oil and Gas 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 Northern Oil and Gas Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Northern Oil and Gas. Overall, three insiders shelled out US$1.7m for shares in the company -- and none sold. This makes one think the business has some good points.
Does Northern Oil and Gas Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 2.9% of Northern Oil and Gas shares, worth about US$85m. 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 Northern Oil and Gas Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Northern Oil and Gas insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Northern Oil and Gas has 4 warning signs (and 1 which is potentially serious) we think you should know about.