Potential Northern Star Resources Limited (ASX:NST) shareholders may wish to note that the Independent Non-Executive Director, Christopher George Rowe, recently bought AU$198k worth of stock, paying AU$9.88 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 1.3%.
Northern Star Resources Insider Transactions Over The Last Year
The Executive Chairman, William Beament, made the biggest insider sale in the last 12 months. That single transaction was for AU$22m worth of shares at a price of AU$9.01 each. That means that even when the share price was below the current price of AU$9.77, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 28% of William Beament's stake.
Over the last year, we can see that insiders have bought 24468 shares worth AU$248k. But insiders sold 3710000 shares worth AU$34m. In total, Northern Star Resources insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Northern Star Resources insiders own about AU$92m worth of shares. That equates to 1.5% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Northern Star Resources Insiders?
The recent insider purchases are heartening. On the other hand the transaction history, over the last year, isn't so positive. While recent transactions indicate confidence in Northern Star Resources, insiders don't own enough of the company to overcome our cautiousness about the longer term transactions. Overall they seem reasonably aligned. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Northern Star Resources.
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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