The CEO, MD & Director of Northern Star Resources Limited (ASX:NST), Stuart Tonkin, Just Bought 4.2% More Shares

Potential Northern Star Resources Limited (ASX:NST) shareholders may wish to note that the CEO, MD & Director, Stuart Tonkin, recently bought AU$443k worth of stock, paying AU$8.86 for each share. Although the purchase only increased their holding by 4.2%, it is still a solid purchase in our view.

View our latest analysis for Northern Star Resources

The Last 12 Months Of Insider Transactions At Northern Star Resources

In the last twelve months, the biggest single purchase by an insider was when insider Raleigh Finlayson bought AU$959k worth of shares at a price of AU$9.59 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$9.33). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. 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.

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

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).

Does Northern Star Resources Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 1.3% of Northern Star Resources shares, worth about AU$139m. 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 Northern Star Resources Insider Transactions Indicate?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Northern Star Resources. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Northern Star Resources. To that end, you should learn about the 3 warning signs we've spotted with Northern Star Resources (including 2 which are potentially serious).

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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. 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.