Whilst it may not be a huge deal, we thought it was good to see that the Northern Shield Resources Inc. (CVE:NRN) Independent Chairman of the Board, Russell Richards, recently bought CA$50k worth of stock, for CA$0.076 per share. That might not be a big purchase but it only increased their holding by 5.0%, and could be interpreted as a good sign.
Northern Shield Resources Insider Transactions Over The Last Year
Notably, that recent purchase by Independent Chairman of the Board Russell Richards was not the only time they bought Northern Shield Resources shares this year. They previously made an even bigger purchase of CA$73k worth of shares at a price of CA$0.055 per share. That means that an insider was happy to buy shares at around the current price of CA$0.055. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Northern Shield Resources share holders is that an insider was buying at near the current price. Russell Richards was the only individual insider to buy over the year.
Russell Richards bought 4000000 shares over the last 12 months at an average price of CA$0.059. You can see a visual depiction of insider transactions (by 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 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.
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Northern Shield Resources insiders own 9.5% of the company, worth about CA$1.2m. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At Northern Shield Resources Tell Us?
It is good to see the recent insider purchase. 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. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Northern Shield Resources insiders are expecting a bright future. To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.
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.
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