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Potential NGE Capital Limited (ASX:NGE) shareholders may wish to note that the Portfolio Manager & Executive Director, Adam Saunders, recently bought AU$173k worth of stock, paying AU$0.63 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 28%.
The Last 12 Months Of Insider Transactions At NGE Capital
Over the last year, we can see that the biggest insider purchase was by Executive Chairman & Chief Investment Officer David Lamm for AU$286k worth of shares, at about AU$0.52 per share. We do like to see buying, but this purchase was made at well below the current price of AU$0.65. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
In the last twelve months NGE Capital insiders were buying shares, but not selling. 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!
NGE Capital is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 34% of NGE Capital shares, worth about AU$8.2m. 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 Does This Data Suggest About NGE Capital Insiders?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of NGE Capital we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that NGE Capital is showing 3 warning signs in our investment analysis, and 2 of those are a bit concerning...
But note: NGE Capital 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. 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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