NGEx Minerals Insiders Sold CA$6.0m Of Shares Suggesting Hesitancy

In the last year, many NGEx Minerals Ltd. (TSE:NGEX) insiders sold a substantial stake in the company which may have sparked shareholders' attention. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for NGEx Minerals

The Last 12 Months Of Insider Transactions At NGEx Minerals

The insider Axel Lundin made the biggest insider purchase in the last 12 months. That single transaction was for CA$1.9m worth of shares at a price of CA$9.81 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$14.59. 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.

Happily, we note that in the last year insiders paid CA$4.4m for 431.35k shares. On the other hand they divested 690.85k shares, for CA$6.0m. Over the last year we saw more insider selling of NGEx Minerals shares, than buying. 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!

I will like NGEx Minerals better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insiders At NGEx Minerals Have Bought Stock Recently

It's good to see that NGEx Minerals insiders have made notable investments in the company's shares. In total, insiders bought CA$1.9m worth of shares in that time, and we didn't record any sales whatsoever. 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 2.8% of NGEx Minerals shares, worth about CA$86m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At NGEx Minerals Tell Us?

The recent insider purchases are heartening. However, the longer term transactions are not so encouraging. The more recent transactions are a positive, but NGEx Minerals insiders haven't shown the sustained enthusiasm that we look for, although they do own a decent number of shares, overall. So they seem pretty well aligned, overall. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 4 warning signs (2 are a bit concerning!) that you ought to be aware of before buying any shares in NGEx Minerals.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.