Yahoo Finance Despite Newpark Resources, Inc.'s recent decline, insiders have made a around US$13k profit after buying earlier this year.
Insiders who purchased Newpark Resources, Inc. (NYSE:NR) shares in the past 12 months are unlikely to be deeply impacted by the stock's 17% decline over the past week. Reason being, despite the recent loss, insiders original purchase value of US$69k is now worth US$82k.
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.
Check out our latest analysis for Newpark Resources
The Last 12 Months Of Insider Transactions At Newpark Resources
Over the last year, we can see that the biggest insider purchase was by CEO & Executive Director Paul Howes for US$69k worth of shares, at about US$2.29 per share. We do like to see buying, but this purchase was made at well below the current price of US$2.72. 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.
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 of Newpark Resources
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Newpark Resources insiders own about US$8.7m worth of shares (which is 3.5% of the company). We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Newpark Resources Tell Us?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Newpark Resources insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Newpark Resources. To that end, you should learn about the 2 warning signs we've spotted with Newpark Resources (including 1 which doesn't sit too well with us).
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
