Yahoo Finance The MD, CEO & Director of Newcrest Mining Limited (ASX:NCM), Sandeep Biswas, Just Bought 10% More Shares
Those following along with Newcrest Mining Limited (ASX:NCM) will no doubt be intrigued by the recent purchase of shares by Sandeep Biswas, MD, CEO & Director of the company, who spent a stonking AU$1.3m on stock at an average price of AU$17.53. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 10%.
View our latest analysis for Newcrest Mining
Newcrest Mining Insider Transactions Over The Last Year
In fact, the recent purchase by Sandeep Biswas was the biggest purchase of Newcrest Mining shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of AU$17.40. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. We note that Sandeep Biswas was also the biggest seller.
Happily, we note that in the last year insiders paid AU$2.2m for 113.54k shares. On the other hand they divested 24.34k shares, for AU$623k. Overall, Newcrest Mining insiders were net buyers during the last year. They paid about AU$19.62 on average. I'd consider this a positive as it suggests insiders see value at around the current price. 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!
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 Newcrest Mining Boast High 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 Newcrest Mining insiders own 0.2% of the company, worth about AU$24m. 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 Newcrest Mining Insiders?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Insiders likely see value in Newcrest Mining shares, given these transactions (along with notable insider ownership of the company). 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. In terms of investment risks, we've identified 1 warning sign with Newcrest Mining and understanding this should be part of your investment process.
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.
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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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