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Don't Ignore The Fact That This Insider Just Sold Some Shares In New Pacific Metals Corp. (CVE:NUAG)

Simply Wall St

We note that the New Pacific Metals Corp. (CVE:NUAG) Director, John McCluskey, recently sold CA$91k worth of stock for CA$4.54 per share. On the bright side, that's just a small sale and only reduced their holding by 6.8%.

Check out our latest analysis for New Pacific Metals

The Last 12 Months Of Insider Transactions At New Pacific Metals

In fact, the recent purchase by Director John McCluskey was not their only acquisition of New Pacific Metals shares this year. They previously made an even bigger purchase of CA$236k worth of shares at a price of CA$2.30 per share. We do like to see buying, but this purchase was made at well below the current price of CA$4.52. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Over the last year, we can see that insiders have bought 226250 shares worth CA$437k. But insiders sold 136200 shares worth CA$272k. Overall, New Pacific Metals insiders were net buyers last year. They paid about CA$1.93 on average. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

TSXV:NUAG Recent Insider Trading, September 28th 2019

New Pacific Metals is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 9.2% of New Pacific Metals shares, worth about CA$59m. 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 New Pacific Metals Insiders?

The stark truth for New Pacific Metals is that there has been more insider selling than insider buying in the last three months. On the other hand, the insider transactions over the last year are encouraging. We like that insiders own a fair amount of the company. So the recent selling doesn't worry us too much. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for New Pacific Metals.

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.

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 editorial-team@simplywallst.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.