NorthX Nickel's CA$570k Market Cap Fall Books Insider Losses

Insiders who acquired CA$182.6k worth of NorthX Nickel Corp.'s (CSE:NIX) stock at an average price of CA$0.17 in the past 12 months may be dismayed by the recent 17% price decline. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth CA$106.1k which is not ideal.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for NorthX Nickel

NorthX Nickel Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by President Tom Meyer for CA$100k worth of shares, at about CA$0.24 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.10). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

While NorthX Nickel insiders bought shares during the last year, they didn't sell. Their average price was about CA$0.17. I'd consider this a positive as it suggests insiders see value at around the current price. 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!

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).

NorthX Nickel Insiders Bought Stock Recently

We saw some NorthX Nickel insider buying shares in the last three months. Insiders purchased CA$64k worth of shares in that period. It's great to see that insiders are only buying, not selling. However, in this case the amount invested recently is quite small.

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 6.9% of NorthX Nickel shares, worth about CA$197k, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About NorthX Nickel Insiders?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that NorthX Nickel insiders are expecting a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that NorthX Nickel is showing 6 warning signs in our investment analysis, and 5 of those are potentially serious...

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.