Yahoo Finance A number of insiders bought North Arrow Minerals Inc. (CVE:NAR) stock last year, which is great news for shareholders
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of North Arrow Minerals Inc. (CVE:NAR), that sends out a positive message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for North Arrow Minerals
North Arrow Minerals Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider Ross Beaty for CA$165k worth of shares, at about CA$0.11 per share. That implies that an insider found the current price of CA$0.12 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the North Arrow Minerals insiders decided to buy shares at close to current prices.
While North Arrow Minerals insiders bought shares during the last year, they didn't sell. Their average price was about CA$0.088. We don't deny that it is nice to see insiders buying stock in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
North Arrow Minerals 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.
North Arrow Minerals Insiders Bought Stock Recently
It's good to see that North Arrow Minerals insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought CA$100k worth of shares. This could be interpreted as suggesting a positive outlook.
Insider Ownership of North Arrow Minerals
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. North Arrow Minerals insiders own about CA$3.4m worth of shares. That equates to 24% 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.
What Might The Insider Transactions At North Arrow Minerals Tell Us?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in North Arrow Minerals shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing North Arrow Minerals. Every company has risks, and we've spotted 3 warning signs for North Arrow Minerals (of which 1 is significant!) you should know about.
But note: North Arrow Minerals 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.
