NextNRG Non-Independent Director Daniel Arbour Sells 44% Of Holding

We'd be surprised if NextNRG Inc. (NASDAQ:NXXT) shareholders haven't noticed that the Non-Independent Director, Daniel Arbour, recently sold US$122k worth of stock at US$1.29 per share. That sale was 44% of their holding, so it does make us raise an eyebrow.

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NextNRG Insider Transactions Over The Last Year

The Executive Chairman & CEO Michael Farkas made the biggest insider purchase in the last 12 months. That single transaction was for US$1.7m worth of shares at a price of US$1.67 each. That means that an insider was happy to buy shares at above the current price of US$1.44. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Happily, we note that in the last year insiders paid US$1.7m for 1.04m shares. But insiders sold 124.37k shares worth US$183k. In the last twelve months there was more buying than selling by NextNRG insiders. 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!

See our latest analysis for NextNRG

NextNRG 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.

Insider Ownership Of NextNRG

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. NextNRG insiders own about US$147m worth of shares (which is 66% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At NextNRG Tell Us?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about NextNRG. Looks promising! 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. Case in point: We've spotted 5 warning signs for NextNRG you should be aware of, and 4 of them are concerning.

Of course NextNRG may not be the best stock to buy. So you may wish to see this free collection of high quality 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.