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A AU$2.5m Market Cap Boost Pleasing ToNative Mineral Resources Holdings Insiders

Native Mineral Resources Holdings Limited (ASX:NMR) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 55% resulting in a AU$2.5m addition to the company’s market value. As a result, the stock they originally bought for AU$773.1k is now worth AU$865.8k.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Native Mineral Resources Holdings

The Last 12 Months Of Insider Transactions At Native Mineral Resources Holdings

In the last twelve months, the biggest single purchase by an insider was when MD, CEO & Director Blake Cannavo bought AU$496k worth of shares at a price of AU$0.03 per share. We do like to see buying, but this purchase was made at well below the current price of AU$0.034. 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.

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Native Mineral Resources Holdings insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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insider-trading-volume

Native Mineral Resources Holdings is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Native Mineral Resources Holdings Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Native Mineral Resources Holdings insiders own about AU$3.2m worth of shares (which is 45% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Native Mineral Resources Holdings Tell Us?

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. Judging from their transactions, and high insider ownership, Native Mineral Resources Holdings insiders feel good about the company's future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To assist with this, we've discovered 7 warning signs that you should run your eye over to get a better picture of Native Mineral Resources Holdings.

But note: Native Mineral Resources Holdings 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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.