Yahoo Finance Read This Before Selling New Dimension Resources Ltd. (CVE:NDR) Shares
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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 we'll take a look at whether insiders have been buying or selling shares in New Dimension Resources Ltd. (CVE:NDR).
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'
See our latest analysis for New Dimension Resources
New Dimension Resources Insider Transactions Over The Last Year
President Eric Roth made the biggest insider purchase in the last 12 months. That single transaction was for CA$150k worth of shares at a price of CA$0.055 each. That means that an insider was happy to buy shares at above the current price of CA$0.04. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Over the last year, we can see that insiders have bought 4.0m shares worth CA$226k. In the last twelve months New Dimension Resources insiders were buying shares, but not selling. 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!
New Dimension Resources is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Have New Dimension Resources Insiders Traded Recently?
Eric Roth bought just CA$990 worth of shares in that time. That's not much at all. Overall, we don't think these recent trades are particularly informative, one way or the other.
Insider Ownership of New Dimension Resources
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 17% of New Dimension Resources shares, worth about CA$422k. 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 Does This Data Suggest About New Dimension Resources Insiders?
Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in New Dimension Resources and we see no evidence to suggest they are worried about the future. I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow for free .
But note: New Dimension Resources 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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.
