Potential Nabors Industries Ltd. (NYSE:NBR) shareholders may wish to note that the Independent Director, Tanya Beder, recently bought US$116k worth of stock, paying US$2.31 for each share. That’s a very solid buy in our book, and increased their holding by a noteworthy 29.5%.
The Last 12 Months Of Insider Transactions At Nabors Industries
Lead Director John Yearwood made the biggest insider purchase in the last 12 months. That single transaction was for US$1.0m worth of shares at a price of US$5.14 each. That means that an insider was happy to buy shares at above the current price of US$2.02. It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. 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.
Happily, we note that in the last year insiders bought 524k shares for a total of US$2.0m. Nabors Industries insiders may have bought shares in the last year, but they didn’t sell any. The average buy price was around US$3.91. 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!
Insider Ownership of Nabors Industries
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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Nabors Industries insiders own 6.7% of the company, worth about US$49m. 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 Nabors Industries Insiders?
It is good to see recent purchasing. 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. Insiders likely see value in Nabors Industries shares, given these transactions (along with notable insider ownership of the company). 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: Nabors Industries 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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