Investors who take an interest in NI Holdings, Inc. (NASDAQ:NODK) should definitely note that insider Jeffrey Thorp recently paid US$14.26 per share to buy US$242k worth of the stock. Although the purchase only increased their holding by 1.6%, it is still a solid purchase in our view.
The Last 12 Months Of Insider Transactions At NI Holdings
Notably, that recent purchase by Jeffrey Thorp is the biggest insider purchase of NI Holdings shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is US$14.40. 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 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. In this case we're pleased to report that the insider bought shares at close to current prices. Jeffrey Thorp was the only individual insider to buy over the year.
You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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).
Insider Ownership of NI Holdings
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Based on our data, NI Holdings insiders have about 0.6% of the stock, worth approximately US$1.9m. But they may have an indirect interest through a corporate structure that we haven't picked up on. I generally like to see higher levels of ownership.
So What Do The NI Holdings Insider Transactions Indicate?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that NI Holdings insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing NI Holdings. Every company has risks, and we've spotted 1 warning sign for NI Holdings you should know about.
Of course NI Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.
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