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Investors who take an interest in Nouveau Monde Graphite Inc. (CVE:NOU) should definitely note that the Chairman of the Board, Arne Frandsen, recently paid CA$9.36 per share to buy CA$486k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 20%.
The Last 12 Months Of Insider Transactions At Nouveau Monde Graphite
In the last twelve months, the biggest single purchase by an insider was when insider Charles-Armand Turpin bought CA$1.3m worth of shares at a price of CA$9.83 per share. That means that an insider was happy to buy shares at above the current price of CA$9.46. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. 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.
In the last twelve months Nouveau Monde Graphite insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Nouveau Monde Graphite is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Nouveau Monde Graphite insiders own about CA$30m worth of shares. That equates to 5.8% of the company. 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 purchases are 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. Given that insiders also own a fair bit of Nouveau Monde Graphite we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Nouveau Monde Graphite. Be aware that Nouveau Monde Graphite is showing 4 warning signs in our investment analysis, and 3 of those are potentially serious...
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, 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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