Stephen Nordstrom Just Bought 15% More Shares In Navarre Minerals Limited (ASX:NML)

Those following along with Navarre Minerals Limited (ASX:NML) will no doubt be intrigued by the recent purchase of shares by insider Stephen Nordstrom, who spent a stonking AU$1.1m on stock at an average price of AU$0.19. Not only is that a big swing, but it increased their holding size by 15%, which is definitely great to see.

Check out our latest analysis for Navarre Minerals

Navarre Minerals Insider Transactions Over The Last Year

Notably, that recent purchase by insider Stephen Nordstrom was not the only time they bought Navarre Minerals shares this year. They previously made an even bigger purchase of AU$1.6m worth of shares at a price of AU$0.17 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.14). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. We note that Stephen Nordstrom was also the biggest seller.

Happily, we note that in the last year insiders paid AU$3.4m for 23.21m shares. On the other hand they divested 860.00k shares, for AU$117k. In total, Navarre Minerals insiders bought more than they sold over the last year. The average buy price was around AU$0.15. I'd consider this a positive as it suggests insiders see value at around the current price. 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!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Navarre Minerals

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 15% of Navarre Minerals shares, worth about AU$12m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Navarre Minerals Insiders?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Navarre Minerals insiders are well aligned, and that they may think the share price is too low. While we like knowing 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. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Navarre Minerals.

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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This article by Simply Wall St is general in nature. 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.
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