Yahoo Finance Bullish Nouveau Monde Graphite Inc. (CVE:NOU) insiders filled their treasuries with CA$2.3m worth of stock over last year
Over the last year, a good number of insiders have significantly increased their holdings in Nouveau Monde Graphite Inc. (CVE:NOU). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Nouveau Monde Graphite
The Last 12 Months Of Insider Transactions At Nouveau Monde Graphite
Over the last year, we can see that the biggest insider purchase was by insider Charles-Armand Turpin for CA$1.3m worth of shares, at about CA$9.83 per share. That means that an insider was happy to buy shares at above the current price of CA$8.38. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Nouveau Monde Graphite insiders may have bought shares in the last year, but they didn't sell any. Their average price was about CA$10.95. I'd consider this a positive as it suggests insiders see value at around the current price. 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!
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.
Nouveau Monde Graphite Insiders Bought Stock Recently
Over the last quarter, Nouveau Monde Graphite insiders have spent a meaningful amount on shares. insider Charles-Armand Turpin spent CA$1.3m on stock, and there wasn't any selling. This is a positive in our book as it implies some confidence.
Does Nouveau Monde Graphite Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Nouveau Monde Graphite insiders own 6.8% of the company, worth about CA$26m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Nouveau Monde Graphite Tell Us?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Insiders likely see value in Nouveau Monde Graphite shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 3 warning signs (2 are a bit unpleasant!) that you ought to be aware of before buying any shares in Nouveau Monde Graphite.
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.
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.
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