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Insiders who bought NextNav Inc. (NASDAQ:NN) stock lover the last 12 months are probably not as affected by last week’s 26% loss. After taking the recent loss into consideration, the US$20.8m worth of stock they bought is now worth US$47.1m, indicating that their investment yielded a positive return.
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.
See our latest analysis for NextNav
The Last 12 Months Of Insider Transactions At NextNav
The insider Charles Frischer made the biggest insider purchase in the last 12 months. That single transaction was for US$9.6m worth of shares at a price of US$5.17 each. We do like to see buying, but this purchase was made at well below the current price of US$11.98. 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 insiders purchased 3.93m shares for US$21m. On the other hand they divested 152.73k shares, for US$939k. In total, NextNav insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insiders At NextNav Have Sold Stock Recently
Over the last three months, we've seen a bit of insider selling at NextNav. Co-Founder Arun Raghupathy divested only US$16k worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the selling simply isn't sufficiently substantial to be of much use as a signal.
Insider Ownership Of NextNav
For a common shareholder, it is worth checking how many shares are held by company 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. NextNav insiders own 24% of the company, currently worth about US$398m 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 NextNav Insiders?
Our data shows a little more insider selling, but no insider buying, in the last three months. But given the selling was modest, we're not worried. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like NextNav insiders think the business has merit. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of NextNav.