This Northern Star Resources Insider Reduced Their Stake By 77%

Viewing insider transactions for Northern Star Resources Limited's (ASX:NST ) over the last year, we see that insiders were net sellers. This means that a larger number of shares were sold by insiders in relation to shares purchased.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Northern Star Resources

The Last 12 Months Of Insider Transactions At Northern Star Resources

Over the last year, we can see that the biggest insider sale was by the CEO, MD & Director, Stuart Tonkin, for AU$8.0m worth of shares, at about AU$14.61 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of AU$15.97. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 77% of Stuart Tonkin's stake. Stuart Tonkin was the only individual insider to sell over the last year.

Stuart Tonkin divested 953.00k shares over the last 12 months at an average price of AU$13.77. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does Northern Star Resources Boast High 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. We usually like to see fairly high levels of insider ownership. Insiders own 0.06% of Northern Star Resources shares, worth about AU$11m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Northern Star Resources Insiders?

The fact that there have been no Northern Star Resources insider transactions recently certainly doesn't bother us. Still, the insider transactions at Northern Star Resources in the last 12 months are not very heartening. The modest level of insider ownership is, at least, some comfort. Of course, the future is what matters most. So if you are interested in Northern Star Resources, you should check out this free report on analyst forecasts for the company.

But note: Northern Star Resources may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 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.