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Insider Buying: The Northern Star Resources Limited (ASX:NST) CEO, MD & Director Just Bought 4.6% More Shares

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Potential Northern Star Resources Limited (ASX:NST) shareholders may wish to note that the CEO, MD & Director, Stuart Tonkin, recently bought AU$469k worth of stock, paying AU$9.38 for each share. Although the purchase only increased their holding by 4.6%, it is still a solid purchase in our view.

See our latest analysis for Northern Star Resources

Northern Star Resources Insider Transactions Over The Last Year

In fact, the recent purchase by Stuart Tonkin was the biggest purchase of Northern Star 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$9.74 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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. The good news for Northern Star Resources share holders is that insiders were buying at near the current price.

Northern Star Resources insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and 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!

insider-trading-volume
insider-trading-volume

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does Northern Star Resources Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It appears that Northern Star Resources insiders own 1.1% of the company, worth about AU$126m. 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 Northern Star Resources Tell Us?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Northern Star Resources. Nice! 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 instance, we've identified 3 warning signs for Northern Star Resources (2 make us uncomfortable) you should be aware of.

Of course Northern Star Resources may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.

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

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