Potential Northern Dynasty Minerals Ltd. (TSE:NDM) shareholders may wish to note that the President, Ronald Thiessen, recently bought CA$200k worth of stock, paying CA$0.49 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 11%.
The Last 12 Months Of Insider Transactions At Northern Dynasty Minerals
Notably, that recent purchase by President Ronald Thiessen was not the only time they bought Northern Dynasty Minerals shares this year. They previously made an even bigger purchase of CA$250k worth of shares at a price of CA$1.00 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.54). 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. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Northern Dynasty Minerals insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around CA$0.60. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by 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 plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests Northern Dynasty Minerals insiders own 2.6% of the company, worth about CA$6.0m. I generally like to see higher levels of ownership.
So What Do The Northern Dynasty Minerals Insider Transactions Indicate?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Northern Dynasty Minerals insiders are reasonably well aligned, and optimistic for the future. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
But note: Northern Dynasty Minerals may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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