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We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares in Nicola Mining Inc. (CVE:NIM).
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'
Nicola Mining Insider Transactions Over The Last Year
President Peter Espig made the biggest insider purchase in the last 12 months. That single transaction was for CA$185k worth of shares at a price of CA$0.15 each. That means that even when the share price was higher than CA$0.095 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Notably Peter Espig was also the biggest seller, having sold CA$79k worth of shares.
In the last twelve months insiders purchased 1.7m shares for CA$238k. On the other hand they divested 656k shares, for CA$79k. In total, Nicola Mining insiders bought more than they sold over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Nicola Mining is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Have Nicola Mining Insiders Traded Recently?
We saw some Nicola Mining insider buying shares in the last three months. Peter Espig bought CA$15k worth of shares in that time. On the other hand, CFO & Secretary Warwick Bay sold CA$5.0k worth of shares. It is good to see that insiders have been buying, but they did not buy very many shares, in the scheme of things.
Insider Ownership of Nicola Mining
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, Nicola Mining insiders have about 4.1% of the stock, worth approximately CA$902k. We prefer to see high levels of insider ownership.
So What Does This Data Suggest About Nicola Mining Insiders?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Nicola Mining stock. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.