Favourable Signals For Novonix: Numerous Insiders Acquired Stock
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 Novonix Limited (ASX:NVX), that sends out a positive message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Novonix
The Last 12 Months Of Insider Transactions At Novonix
The Non-Executive Chairman, Robert Natter, made the biggest insider sale in the last 12 months. That single transaction was for AU$356k worth of shares at a price of AU$0.95 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of AU$0.82. So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Robert Natter. Notably Robert Natter was also the biggest buyer, having purchased AU$693k worth of shares.
Over the last year, we can see that insiders have bought 856.96k shares worth AU$693k. On the other hand they divested 373.02k shares, for AU$356k. Overall, Novonix insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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.
Novonix Insiders Bought Stock Recently
There has been significantly more insider buying, than selling, at Novonix, over the last three months. In total, two insiders bought AU$693k worth of shares in that time. On the other hand, Non-Executive Chairman Robert Natter netted AU$356k by selling. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.
Insider Ownership Of Novonix
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Novonix insiders own about AU$47m worth of shares. That equates to 12% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Novonix Tell Us?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Novonix we think they are probably pretty confident of a bright 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. When we did our research, we found 2 warning signs for Novonix (1 is a bit concerning!) that we believe deserve your full attention.
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 currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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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.
