Newfield Resources Insider Buyers See Boost After Market Cap Rose AU$26m
Newfield Resources Limited (ASX:NWF) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 20% resulting in a AU$26m addition to the company’s market value. As a result, the stock they originally bought for AU$3.26m is now worth AU$3.80m.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Newfield Resources
The Last 12 Months Of Insider Transactions At Newfield Resources
In the last twelve months, the biggest single purchase by an insider was when insider Rustiyan Oen bought AU$3.1m worth of shares at a price of AU$0.15 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.18. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Newfield Resources insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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).
Insiders At Newfield Resources Have Bought Stock Recently
Over the last quarter, Newfield Resources insiders have spent a meaningful amount on shares. Specifically, insider Rustiyan Oen bought AU$3.1m worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.
Insider Ownership Of Newfield Resources
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Newfield Resources insiders own about AU$49m worth of shares. That equates to 31% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Newfield Resources Insiders?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives 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 Newfield Resources 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. At Simply Wall St, we've found that Newfield Resources has 4 warning signs (3 can't be ignored!) that deserve your attention before going any further with your analysis.
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.
