In This Article:
Native Mineral Resources Holdings Limited (ASX:NMR) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 25%, resulting in a AU$3.2m rise in the company's market capitalisation, translating to a gain of 60% on their initial investment. As a result, their original purchase of AU$556.2k worth of stock is now worth AU$890.8k.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Native Mineral Resources Holdings
The Last 12 Months Of Insider Transactions At Native Mineral Resources Holdings
In the last twelve months, the biggest single purchase by an insider was when insider Dean Mellers bought AU$355k worth of shares at a price of AU$0.023 per share. Even though the purchase was made at a significantly lower price than the recent price (AU$0.04), we still think insider buying is a positive. 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.
Native Mineral Resources Holdings insiders may have bought shares in the last year, but they didn't sell any. 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!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insiders At Native Mineral Resources Holdings Have Bought Stock Recently
It's good to see that Native Mineral Resources Holdings insiders have made notable investments in the company's shares. Specifically, insider Dean Mellers bought AU$355k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.
Insider Ownership Of Native Mineral Resources Holdings
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Native Mineral Resources Holdings insiders own 33% of the company, worth about AU$5.3m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.