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MD, CEO & Executive Director Gregory Hunt Just Bought 3.7% More Shares In Nufarm Limited (ASX:NUF)

Even if it's not a huge purchase, we think it was good to see that Gregory Hunt, the MD, CEO & Executive Director of Nufarm Limited (ASX:NUF) recently shelled out AU$97k to buy stock, at AU$4.85 per share. Although the purchase is not a big one, increasing their shareholding by only 3.7%, it can be interpreted as a good sign.

See our latest analysis for Nufarm

The Last 12 Months Of Insider Transactions At Nufarm

Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Chairman John Gillam for AU$746k worth of shares, at about AU$4.07 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$4.88. 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.

Nufarm insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. 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

Nufarm is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

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. It appears that Nufarm insiders own 6.1% of the company, worth about AU$114m. 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 Nufarm Insider Transactions Indicate?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Nufarm insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with Nufarm and understanding this should be part of your investment process.

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.

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. 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.

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

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