NorthX Nickel's CA$855k Market Cap Fall Books Insider Losses

The recent 15% drop in NorthX Nickel Corp.'s (CSE:NIX) stock could come as a blow to insiders who purchased CA$296.9k worth of stock at an average buy price of CA$0.35 over the past 12 months. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth CA$144.7k, which is not what they expected.

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 NorthX Nickel

The Last 12 Months Of Insider Transactions At NorthX Nickel

In the last twelve months, the biggest single purchase by an insider was when President Tom Meyer bought CA$100k worth of shares at a price of CA$0.24 per share. That means that even when the share price was higher than CA$0.17 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, 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$0.35. This is nice to see since it implies that insiders might see value around current prices. 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!

NorthX Nickel is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Does NorthX Nickel Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 5.4% of NorthX Nickel shares, worth about CA$308k, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At NorthX Nickel Tell Us?

The fact that there have been no NorthX Nickel insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more NorthX Nickel stock. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - NorthX Nickel has 5 warning signs we think you should be aware of.

But note: NorthX Nickel 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.