Nimy Resources Loses AU$7.0m Market Value But Insiders See Windfall Of AU$55k

Insiders who bought Nimy Resources Limited (ASX:NIM) in the last 12 months may probably not pay attention to the stock's recent 30% drop. After taking the recent loss into consideration, the AU$174.9k worth of stock they bought is now worth AU$229.5k, indicating that their investment yielded a positive return.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Nimy Resources

Over the last year, we can see that the biggest insider purchase was by MD & Executive Director 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$0.068. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

While Nimy Resources insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Nimy Resources

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 Of Nimy Resources

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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Nimy Resources insiders own 38% of the company, worth about AU$6.3m. 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 Does This Data Suggest About Nimy Resources Insiders?

It doesn't really mean much that no insider has traded Nimy Resources shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Nimy Resources and their transactions don't cause us concern. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 6 warning signs for Nimy Resources (of which 3 make us uncomfortable!) you should know about.

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.