Colin McCavana Is The Non-Executive Chairman of Northern Minerals Limited (ASX:NTU) And They Just Sold 82% Of Their Shares

We note that the Northern Minerals Limited (ASX:NTU) Non-Executive Chairman, Colin McCavana, recently sold AU$88k worth of stock for AU$0.037 per share. That might not be a huge sum but it was 82% of their personal holding, so we find it a little discouraging.

See our latest analysis for Northern Minerals

Northern Minerals Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Yongquan He bought AU$4.7m worth of shares at a price of AU$0.02 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.036. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months insiders purchased 477.82m shares for AU$9.3m. On the other hand they divested 8.75m shares, for AU$278k. In total, Northern Minerals insiders bought more than they sold over the last year. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does Northern 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 26% of Northern Minerals shares, worth about AU$43m. 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 Does This Data Suggest About Northern Minerals Insiders?

An insider sold stock recently, but they haven't been buying. On the other hand, the insider transactions over the last year are encouraging. It's good to see insiders are shareholders. So we're not overly bothered by recent selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 4 warning signs for Northern Minerals (3 are a bit concerning!) and we strongly recommend you look at them before investing.

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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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