Trade Alert: The Independent Chairman of the Board Of Northern Oil and Gas, Inc. (NYSEMKT:NOG), Bahram Akradi, Has Just Spent US$51k Buying A Few More Shares
Whilst it may not be a huge deal, we thought it was good to see that the Northern Oil and Gas, Inc. (NYSEMKT:NOG) Independent Chairman of the Board, Bahram Akradi, recently bought US$51k worth of stock, for US$0.76 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.
See our latest analysis for Northern Oil and Gas
Northern Oil and Gas Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when insider Robert Rowling bought US$5.6m worth of shares at a price of US$1.70 per share. That means that an insider was happy to buy shares at above the current price of US$0.80. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months insiders purchased 5.86m shares for US$9.0m. On the other hand they divested 100000 shares, for US$214k. Overall, Northern Oil and Gas insiders were net buyers during the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Northern Oil and Gas is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
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. Insiders own 9.9% of Northern Oil and Gas shares, worth about US$32m. 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 Northern Oil and Gas Insiders?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Northern Oil and Gas we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 5 warning signs for Northern Oil and Gas (of which 2 don't sit too well with us!) you should know about.
But note: Northern Oil and Gas 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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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. Thank you for reading.
