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Those following along with Northern Oil and Gas, Inc. (NYSEMKT:NOG) will no doubt be intrigued by the recent purchase of shares by insider Robert Rowling, who spent a stonking US$5.0m on stock at an average price of US$9.75. That increased their holding by a full 101%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.
Northern Oil and Gas Insider Transactions Over The Last Year
Notably, that recent purchase by Robert Rowling is the biggest insider purchase of Northern Oil and Gas shares that we've seen in the last year. That implies that an insider found the current price of US$12.01 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. 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 purchases were made at close to current prices.
In the last twelve months insiders purchased 616.75k shares for US$5.7m. But insiders sold 260.00k shares worth US$2.4m. In total, Northern Oil and Gas insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
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.
Does Northern Oil and Gas Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 6.3% of Northern Oil and Gas shares, worth about US$44m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Northern Oil and Gas Insiders?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. 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. Be aware that Northern Oil and Gas is showing 4 warning signs in our investment analysis, and 1 of those is a bit concerning...
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, but not derivative transactions.
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.
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