NOVONIX Insiders Are Down US$72k But Regain Some Losses

Insiders who purchased US$693.4k worth of NOVONIX Limited (ASX:NVX) shares over the past year recouped some of their losses after price gained 11% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled US$72k since the time of purchase.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for NOVONIX

The Last 12 Months Of Insider Transactions At NOVONIX

Over the last year, we can see that the biggest insider sale was by the Non-Executive Chairman, Robert Natter, for AU$356k worth of shares, at about AU$0.95 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is AU$0.72. So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Robert Natter. Notably Robert Natter was also the biggest buyer, having purchased AU$693k worth of shares.

Happily, we note that in the last year insiders paid AU$693k for 856.96k shares. On the other hand they divested 373.02k shares, for AU$356k. Overall, NOVONIX insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NOVONIX is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insiders At NOVONIX Have Bought Stock Recently

It's good to see that NOVONIX insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought AU$693k worth of shares. That shows some optimism about the company's future.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. NOVONIX insiders own about AU$41m worth of shares. That equates to 12% of the company. 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 NOVONIX Insiders?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Insiders likely see value in NOVONIX shares, given these transactions (along with notable insider ownership of the company). 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 instance, we've identified 2 warning signs for NOVONIX (1 shouldn't be ignored) you should be aware of.

Of course NOVONIX 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.