Insider Stock Buying Reaches US$20.8m On NextNav

In the last year, multiple insiders have substantially increased their holdings of NextNav Inc. (NASDAQ:NN) stock, indicating that insiders' optimism about the company's prospects has increased.

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

Check out our latest analysis for NextNav

NextNav Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Charles Frischer bought US$9.6m worth of shares at a price of US$5.17 per share. We do like to see buying, but this purchase was made at well below the current price of US$12.99. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Over the last year, we can see that insiders have bought 3.93m shares worth US$21m. On the other hand they divested 156.06k shares, for US$1m. In total, NextNav insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NextNav is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At NextNav Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at NextNav. In total, Co-Founder Arun Raghupathy sold US$77k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Does NextNav 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. NextNav insiders own 24% of the company, currently worth about US$395m 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 NextNav Insiders?

An insider sold NextNav shares recently, but they didn't buy any. But we take heart from prior transactions. And insider ownership remains quite considerable. So we're not too bothered by recent selling. 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. Case in point: We've spotted 4 warning signs for NextNav you should be aware of.

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.