Insider Spends AU$1.0m Buying More Shares In NextEd Group

Those following along with NextEd Group Limited (ASX:NXD) will no doubt be intrigued by the recent purchase of shares by Angus Johnson, Non-Executive Director of the company, who spent a stonking AU$1.0m on stock at an average price of AU$0.10. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 43%.

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NextEd Group Insider Transactions Over The Last Year

In fact, the recent purchase by Non-Executive Director Angus Johnson was not their only acquisition of NextEd Group shares this year. They previously made an even bigger purchase of AU$4.5m worth of shares at a price of AU$1.19 per share. That means that even when the share price was higher than AU$0.13 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Angus Johnson was the only individual insider to buy during the last year.

Angus Johnson purchased 32.60m shares over the year. The average price per share was AU$0.22. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for NextEd Group

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of NextEd Group

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. NextEd Group insiders own about AU$9.8m worth of shares. That equates to 35% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The NextEd Group Insider Transactions Indicate?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest NextEd Group insiders are well aligned, and that they may think the share price is too low. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 2 warning signs for NextEd Group and we suggest you have a look.

But note: NextEd Group 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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.