Yahoo Finance Are Insiders Buying Nevada Energy Metals Inc. (CVE:BFF) Stock?
We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Nevada Energy Metals Inc. (CVE:BFF), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
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View our latest analysis for Nevada Energy Metals
The Last 12 Months Of Insider Transactions At Nevada Energy Metals
Over the last year, we can see that the biggest insider purchase was by Ron Loewen for CA$75k worth of shares, at about CA$0.075 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$0.12), we still think insider buying is a positive. 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.
Happily, we note that in the last year insiders paid CA$129k for 1.6m shares. On the other hand they divested 150k shares, for CA$23k. In total, Nevada Energy Metals insiders bought more than they sold over the last year. You can see the insider transactions (by 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!
Nevada Energy Metals is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Nevada Energy Metals Insiders Are Selling The Stock
We have seen a bit of insider selling at Nevada Energy Metals, over the last three months. Ron Loewen divested only CA$23k worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the volume sold is so low that it really doesn't bother us.
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. Insiders own 17% of Nevada Energy Metals shares, worth about CA$197k. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Nevada Energy Metals Insider Transactions Indicate?
While there has not been any insider buying in the last three months, there has been selling. But the sales were small, so we're not concerned. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Nevada Energy Metals insiders are doubting the company, and they do own shares. Along with insider transactions, I recommend checking if Nevada Energy Metals is growing revenue. This free chart of historic revenue and earnings should make that easy.
But note: Nevada Energy Metals 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.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
