Insiders Rewarded With AU$1.3m Addition To Investment As Nordic Resources Stock Hits AU$77m

Nordic Resources Limited (ASX:NNL) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 28% resulting in a AU$17m addition to the company’s market value. In other words, the original AU$2.89m purchase is now worth AU$4.15m.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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Nordic Resources Insider Transactions Over The Last Year

In fact, the recent purchase by Carl Charalambous was the biggest purchase of Nordic Resources shares made by an insider individual in the last twelve months, according to our records. Even though the purchase was made at a significantly lower price than the recent price (AU$0.20), we still think insider buying is a positive. 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.

Nordic Resources insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Nordic Resources

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insiders At Nordic Resources Have Bought Stock Recently

It's good to see that Nordic Resources insiders have made notable investments in the company's shares. insider Carl Charalambous spent AU$2.8m on stock, and there wasn't any selling. This is a positive in our book as it implies some confidence.

Insider Ownership Of Nordic Resources

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that Nordic Resources insiders own 17% of the company, worth about AU$13m. 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 Nordic Resources 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. When combined with notable insider ownership, these factors suggest Nordic Resources insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Nordic Resources has 5 warning signs (and 3 which are potentially serious) we think you should know about.

Of course Nordic Resources may not be the best stock to buy. So you may wish to see this free collection of high quality 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.