Yahoo Finance Insider Stock Buying Reaches US$1.4m On Newcrest Mining
In the last year, multiple insiders have substantially increased their holdings of Newcrest Mining Limited (ASX:NCM) stock, indicating that insiders' optimism about the company's prospects has increased.
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.
See our latest analysis for Newcrest Mining
The Last 12 Months Of Insider Transactions At Newcrest Mining
In the last twelve months, the biggest single purchase by an insider was when insider Sandeep Biswas bought AU$1.3m worth of shares at a price of AU$17.53 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$27.75. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
In the last twelve months insiders purchased 80.63k shares for AU$1.4m. But insiders sold 66.05k shares worth AU$1.2m. In the last twelve months there was more buying than selling by Newcrest Mining insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Newcrest Mining insiders own about AU$41m worth of shares. That equates to 0.2% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Newcrest Mining Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Newcrest Mining and their transactions don't cause us concern. Of course, the future is what matters most. So if you are interested in Newcrest Mining, you should check out this free report on analyst forecasts for the company.
But note: Newcrest Mining 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, but not derivative transactions.
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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.
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