Bullish NexGen Energy Insiders Loaded Up On CA$2.80m Of Stock

In the last year, multiple insiders have substantially increased their holdings of NexGen Energy Ltd. (TSE:NXE) stock, indicating that insiders' optimism about the company's prospects has increased.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for NexGen Energy

NexGen Energy Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Director Donald Jeffrey Roberts bought CA$2.1m worth of shares at a price of CA$5.57 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$10.05), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

NexGen Energy insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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

Insiders At NexGen Energy Have Bought Stock Recently

We saw some NexGen Energy insider buying shares in the last three months. Independent Director Donald Jeffrey Roberts shelled out CA$14k for shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 1.7% of NexGen Energy shares, worth about CA$93m. 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 NexGen Energy Insiders?

Our data shows a little insider buying, but no selling, in the last three months. The net investment is not enough to encourage us much. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in NexGen Energy and their transactions don't cause us concern. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Our analysis shows 3 warning signs for NexGen Energy (1 doesn't sit too well with us!) and we strongly recommend you look at these before investing.

But note: NexGen Energy 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.