Yahoo Finance Insider Buying: The NGE Capital Limited (ASX:NGE) Portfolio Manager & Executive Director Just Bought 15% More Shares
Even if it's not a huge purchase, we think it was good to see that Adam Saunders, the Portfolio Manager & Executive Director of NGE Capital Limited (ASX:NGE) recently shelled out AU$67k to buy stock, at AU$0.52 per share. That purchase might not be huge but it did increase their holding by 15%.
See our latest analysis for NGE Capital
The Last 12 Months Of Insider Transactions At NGE Capital
In the last twelve months, the biggest single purchase by an insider was when Executive Chairman & Chief Investment Officer David Lamm bought AU$1.9m worth of shares at a price of AU$0.64 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.52). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. We note that David Lamm was both the biggest buyer and the biggest seller.
In the last twelve months insiders purchased 4.21m shares for AU$2.6m. On the other hand they divested 2.95m shares, for AU$1.9m. In the last twelve months there was more buying than selling by NGE Capital insiders. 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 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
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. It appears that NGE Capital insiders own 31% of the company, worth about AU$6.0m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At NGE Capital Tell Us?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest NGE Capital insiders are well aligned, and that they may think the share price is too low. 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. For example, NGE Capital has 2 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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