Insider Buyers Lose Additional AU$66k As Native Mineral Resources Holdings Dips To AU$5.5m

Insiders who acquired AU$212.0k worth of Native Mineral Resources Holdings Limited's (ASX:NMR) stock at an average price of AU$0.031 in the past 12 months may be dismayed by the recent 19% price decline. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth AU$145.7k, which is not what they expected.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Native Mineral Resources Holdings

Native Mineral Resources Holdings Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when MD, CEO & Director Blake Cannavo bought AU$131k worth of shares at a price of AU$0.03 per share. That means that even when the share price was higher than AU$0.021 (the recent price), an insider wanted to purchase shares. 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While Native Mineral Resources Holdings insiders bought shares during the last year, they didn't sell. 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!

Native Mineral Resources Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership

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. Insiders own 36% of Native Mineral Resources Holdings shares, worth about AU$2.0m. 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 Do The Native Mineral Resources Holdings Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Native Mineral Resources Holdings shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Native Mineral Resources Holdings and we see no evidence to suggest they are worried about the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 6 warning signs for Native Mineral Resources Holdings (5 are concerning!) that we believe deserve your full attention.

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 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.