Nimy Resources Decline Means Insider Profits Down To AU$35k

Insiders who bought Nimy Resources Limited (ASX:NIM) in the last 12 months may probably not pay attention to the stock's recent 12% drop. Even after accounting for the recent loss, the AU$193.4k worth of stock purchased by them is now worth AU$228.4k or in other words, their investment continues to give good returns.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Nimy Resources

The Last 12 Months Of Insider Transactions At Nimy Resources

Over the last year, we can see that the biggest insider purchase was by Executive Chairman Neville Hampson for AU$100k worth of shares, at about AU$0.05 per share. We do like to see buying, but this purchase was made at well below the current price of AU$0.06. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Nimy Resources insiders may have bought shares in the last year, but they didn't sell any. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Nimy Resources insiders own 52% of the company, worth about AU$5.5m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Nimy Resources Insider Transactions Indicate?

The fact that there have been no Nimy Resources insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Nimy Resources insiders think the business has merit. 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 Nimy Resources is showing 5 warning signs in our investment analysis, and 4 of those shouldn't be ignored...

But note: Nimy Resources 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.