Insiders of Nano Labs Getting Good Value On Their CN¥10.00m Investment

Nano Labs Ltd (NASDAQ:NA) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 62% resulting in a US$16m addition to the company’s market value. As a result, their original purchase of CN¥10.00m worth of stock is now worth CN¥11.6m.

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.

Check out our latest analysis for Nano Labs

The Last 12 Months Of Insider Transactions At Nano Labs

Over the last year, we can see that the biggest insider purchase was by Chairman & CEO Jianping Kong for US$7.0m worth of shares, at about US$0.52 per share. We do like to see buying, but this purchase was made at well below the current price of US$0.61. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months Nano Labs insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Nano Labs Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Nano Labs insiders own 59% of the company, currently worth about US$25m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Nano Labs Insiders?

The fact that there have been no Nano Labs insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Nano Labs insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Nano Labs. Our analysis shows 4 warning signs for Nano Labs (3 are potentially serious!) and we strongly recommend you look at these before investing.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.