Insiders In NSX Still Down 29% On AU$1.79m Investment

Insiders who bought AU$1.79m worth of NSX Limited (ASX:NSX) stock in the last year recovered part of their losses as the stock rose by 10% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling AU$521k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for NSX

The Last 12 Months Of Insider Transactions At NSX

In the last twelve months, the biggest single purchase by an insider was when insider Michael Giles bought AU$1.8m worth of shares at a price of AU$0.045 per share. That means that an insider was happy to buy shares at above the current price of AU$0.032. 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. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Michael Giles was the only individual insider to buy during the last year.

Michael Giles bought 39.72m shares over the last 12 months at an average price of AU$0.045. You can see a visual depiction of insider transactions (by companies and 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!

NSX is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does NSX Boast High Insider Ownership?

Many investors like to check how much of a company is owned by 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. Insiders own 36% of NSX shares, worth about AU$4.6m. 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 NSX Insiders?

It doesn't really mean much that no insider has traded NSX shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in NSX and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing NSX. When we did our research, we found 6 warning signs for NSX (4 are a bit concerning!) that we believe deserve your full attention.

But note: NSX 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.