Insiders See AU$6.67m Investment In Native Mineral Resources Holdings Jump Last Week

Native Mineral Resources Holdings Limited (ASX:NMR) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 41% resulting in a AU$34m addition to the company’s market value. In other words, the original AU$6.67m purchase is now worth AU$24.3m.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

The Last 12 Months Of Insider Transactions At Native Mineral Resources Holdings

Over the last year, we can see that the biggest insider purchase was by MD, CEO & Director Blake Cannavo for AU$3.0m worth of shares, at about AU$0.04 per share. We do like to see buying, but this purchase was made at well below the current price of AU$0.14. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While Native Mineral Resources Holdings 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 Native Mineral Resources Holdings

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.

Insiders At Native Mineral Resources Holdings Have Bought Stock Recently

It's good to see that Native Mineral Resources Holdings insiders have made notable investments in the company's shares. In total, insiders bought AU$6.2m worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.

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. Native Mineral Resources Holdings insiders own about AU$38m worth of shares. That equates to 33% of the company. 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 is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Insiders likely see value in Native Mineral Resources Holdings shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Native Mineral Resources Holdings. Case in point: We've spotted 5 warning signs for Native Mineral Resources Holdings you should be aware of, and 4 of them can'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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.