Despite NT Minerals' Pullback, Insiders Still Gained AU$40k

Insiders who purchased NT Minerals Limited (ASX:NTM) shares in the past 12 months are unlikely to be deeply impacted by the stock's 25% decline over the past week. After accounting for the recent loss, the AU$109.1k worth of shares they purchased is now worth AU$148.7k, suggesting a good return on their investment.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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NT Minerals Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Jason Peterson bought AU$79k worth of shares at a price of AU$0.002 per share. We do like to see buying, but this purchase was made at well below the current price of AU$0.003. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

NT Minerals insiders may have bought shares in the last year, but they didn't sell any. They paid about AU$0.0022 on average. We don't deny that it is nice to see insiders buying stock in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. 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 NT Minerals

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).

Does NT Minerals Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that NT Minerals insiders own 31% of the company, worth about AU$1.1m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At NT Minerals Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in NT Minerals and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing NT Minerals. At Simply Wall St, we found 5 warning signs for NT Minerals that deserve your attention before buying any shares.

But note: NT Minerals 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.