Trade Alert: The Non-Executive Director Of Nictus Limited (JSE:NCS), Nicolaas Tromp, Has Just Spent R56k Buying A Few More Shares

Even if it's not a huge purchase, we think it was good to see that Nicolaas Tromp, the Non-Executive Director of Nictus Limited (JSE:NCS) recently shelled out R56k to buy stock, at R0.56 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

See our latest analysis for Nictus

Nictus Insider Transactions Over The Last Year

Notably, that recent purchase by Nicolaas Tromp is the biggest insider purchase of Nictus shares that we've seen in the last year. We do like to see buying, but this purchase was made at well below the current price of R0.80. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

While Nictus insiders bought shares during the last year, they didn't sell. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Nictus insiders own 59% of the company, currently worth about R25m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Nictus Tell Us?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Nictus. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 5 warning signs for Nictus you should be aware of, and 2 of them are significant.

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, but not derivative transactions.

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