This Nordic Resources Insider Increased Their Holding In The Last Year

From what we can see, insiders were net buyers in Nordic Resources Limited's (ASX:NNL ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Nordic Resources

In the last twelve months, the biggest single purchase by an insider was when insider Carl Charalambous bought AU$2.8m worth of shares at a price of AU$0.15 per share. That means that an insider was happy to buy shares at around the current price of AU$0.16. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider bought shares at close to current prices. Carl Charalambous was the only individual insider to buy during the last year.

Carl Charalambous bought 21.97m shares over the last 12 months at an average price of AU$0.16. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Nordic Resources

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

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. Our data indicates that Nordic Resources insiders own about AU$8.3m worth of shares (which is 14% of the company). We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Nordic Resources Insiders?

It doesn't really mean much that no insider has traded Nordic Resources shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Nordic Resources insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Nordic Resources. To that end, you should learn about the 4 warning signs we've spotted with Nordic Resources (including 3 which make us uncomfortable).

But note: Nordic Resources may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.

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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.