Insider Buying: The Navarre Minerals Limited (ASX:NML) MD & Executive Director Just Bought 580% More Shares

Simply Wall St
November 22, 2021
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Those following along with Navarre Minerals Limited (ASX:NML) will no doubt be intrigued by the recent purchase of shares by Ian Holland, MD & Executive Director of the company, who spent a stonking AU$1m on stock at an average price of AU$0.075. That purchase boosted their holding by 580%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

See our latest analysis for Navarre Minerals

The Last 12 Months Of Insider Transactions At Navarre Minerals

In the last twelve months, the biggest single purchase by an insider was when insider Stephen Nordstrom bought AU$1.1m worth of shares at a price of AU$0.19 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.077). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Notably Stephen Nordstrom was also the biggest seller.

Happily, we note that in the last year insiders paid AU$2.7m for 23.55m shares. But they sold 2.62m shares for AU$334k. In total, Navarre Minerals insiders bought more than they sold over the last year. They paid about AU$0.12 on average. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

ASX:NML Insider Trading Volume November 22nd 2021

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

Does Navarre Minerals Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Navarre Minerals insiders own about AU$9.0m worth of shares (which is 9.8% of the company). We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Navarre Minerals Insiders?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Navarre Minerals stock. 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. Case in point: We've spotted 6 warning signs for Navarre Minerals you should be aware of, and 4 of these shouldn't be ignored.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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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