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Independent Non-Executive Director Philip Bainbridge Just Bought 130% More Shares In Newcrest Mining Limited (ASX:NCM)

·3 min read

Even if it's not a huge purchase, we think it was good to see that Philip Bainbridge, the Independent Non-Executive Director of Newcrest Mining Limited (ASX:NCM) recently shelled out AU$97k to buy stock, at AU$17.28 per share. While that isn't the hugest buy, it actually boosted their shareholding by 130%, which is good to see.

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. That means that an insider was happy to buy shares at above the current price of AU$16.77. 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. We note that Sandeep Biswas was both the biggest buyer and the biggest seller.

In the last twelve months insiders purchased 108.31k shares for AU$2.6m. But they sold 24.34k shares for AU$623k. In the last twelve months there was more buying than selling by Newcrest Mining insiders. 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!

insider-trading-volume
insider-trading-volume

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Newcrest Mining Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.2% of Newcrest Mining shares, worth about AU$25m. 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 Newcrest Mining Insiders?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Insiders likely see value in Newcrest Mining shares, given these transactions (along with notable insider ownership of the company). While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 2 warning signs for Newcrest Mining (1 is a bit concerning!) and we strongly recommend you look at these before investing.

Of course Newcrest Mining may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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