This NovaGold Resources Insider Reduced Their Stake By 20%

Viewing insider transactions for NovaGold Resources Inc.'s (TSE:NG ) over the last year, we see that insiders were net sellers. This means that a larger number of shares were sold by insiders in relation to shares purchased.

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

See our latest analysis for NovaGold Resources

NovaGold Resources Insider Transactions Over The Last Year

The Vice President of Corporate Communications, Melanie Hennessey, made the biggest insider sale in the last 12 months. That single transaction was for CA$706k worth of shares at a price of CA$7.06 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (CA$3.54). So it is hard to draw any strong conclusion from it. Melanie Hennessey was the only individual insider to sell shares in the last twelve months.

Melanie Hennessey divested 191.00k shares over the last 12 months at an average price of US$6.32. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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. We usually like to see fairly high levels of insider ownership. NovaGold Resources insiders own about CA$15m worth of shares. That equates to 1.3% of the company. 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 Do The NovaGold Resources Insider Transactions Indicate?

The fact that there have been no NovaGold Resources insider transactions recently certainly doesn't bother us. Still, the insider transactions at NovaGold Resources in the last 12 months are not very heartening. The modest level of insider ownership is, at least, some comfort. While we like knowing 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. To that end, you should learn about the 4 warning signs we've spotted with NovaGold Resources (including 3 which don't sit too well with us).

But note: NovaGold Resources 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.