Bullish insiders at Newcrest Mining Limited (ASX:NCM) loaded up on US$2.3m of stock earlier this year
Multiple insiders secured a larger position in Newcrest Mining Limited (ASX:NCM) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
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 Newcrest Mining
Newcrest Mining Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by MD, CEO & Director Sandeep Biswas for AU$1.7m worth of shares, at about AU$24.03 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$26.74. 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.
Happily, we note that in the last year insiders paid AU$2.3m for 96.16k shares. But they sold 24.34k shares for AU$623k. Overall, Newcrest Mining insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders at Newcrest Mining Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Newcrest Mining. We can see that Independent Non-Executive Director Sally-Anne Layman paid AU$155k for shares in the company. No-one sold. This is a positive in our book as it implies some confidence.
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.1% of Newcrest Mining shares, worth about AU$36m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Newcrest Mining Insiders?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Newcrest Mining shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Newcrest Mining. For example - Newcrest Mining has 1 warning sign we think you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
