In This Article:
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Nimy Resources Limited (ASX:NIM), that sends out a positive message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Nimy Resources
Nimy Resources Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when MD & Executive Director Neville Hampson bought AU$100k worth of shares at a price of AU$0.05 per share. We do like to see buying, but this purchase was made at well below the current price of AU$0.069. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Nimy Resources insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Nimy Resources is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Does Nimy Resources Boast High Insider Ownership?
Many investors like to check how much of a company is owned by 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. Nimy Resources insiders own 52% of the company, currently worth about AU$6.3m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Nimy Resources Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, Nimy Resources 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. For instance, we've identified 5 warning signs for Nimy Resources (4 shouldn't be ignored) you should be aware of.