Yahoo Finance Independent Non-Executive Director Jack Spencer-Cotton Just Bought 1,020% More Shares In Newfield Resources Limited (ASX:NWF)
Newfield Resources Limited (ASX:NWF) shareholders (or potential shareholders) will be happy to see that the Independent Non-Executive Director, Jack Spencer-Cotton, recently bought a whopping AU$2.7m worth of stock, at a price of AU$0.44. That purchase boosted their holding by 1,020%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.
See our latest analysis for Newfield Resources
The Last 12 Months Of Insider Transactions At Newfield Resources
In fact, the recent purchase by Jack Spencer-Cotton was the biggest purchase of Newfield Resources shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of AU$0.44 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. In this case we're pleased to report that the insider bought shares at close to current prices. Jack Spencer-Cotton was the only individual insider to buy during the last year.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Newfield Resources 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.
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. We usually like to see fairly high levels of insider ownership. Insiders own 37% of Newfield Resources shares, worth about AU$94m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Newfield Resources Insider Transactions Indicate?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Newfield Resources we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Newfield Resources. Case in point: We've spotted 3 warning signs for Newfield Resources you should be aware of.
But note: Newfield 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.
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.
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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