Insiders rewarded with a US$80k addition on top of their US$972k purchase as Nutrien Ltd. (TSE:NTR) hits CA$55b
Nutrien Ltd. (TSE:NTR) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 4.0%, resulting in a CA$2.1b rise in the company's market capitalisation. Put another way, the original US$972k acquisition is now worth US$1.1m.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Nutrien
The Last 12 Months Of Insider Transactions At Nutrien
Over the last year, we can see that the biggest insider purchase was by President Kenneth Seitz for CA$796k worth of shares, at about CA$102 per share. That implies that an insider found the current price of CA$111 per share to be enticing. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Nutrien share holders is that insiders were buying at near the current price.
Over the last year, we can see that insiders have bought 9.52k shares worth CA$972k. On the other hand they divested 4.00k shares, for CA$525k. Overall, Nutrien insiders were net buyers during the last year. 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!
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).
Nutrien Insiders Bought Stock Recently
We saw some Nutrien insider buying shares in the last three months. Executive VP & Chief Commercial Officer Mark Thompson purchased CA$58k worth of shares in that period. It's good to see the insider buying, as well as the lack of recent sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.
Insider Ownership Of Nutrien
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Nutrien insiders own 0.03% of the company, worth about CA$19m. 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 Do The Nutrien Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Nutrien insiders are well aligned, and that they may think the share price is too low. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To help with this, we've discovered 2 warning signs (1 can't be ignored!) that you ought to be aware of before buying any shares in Nutrien.
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, but not derivative transactions.
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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.
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