Trade Alert: The MD, CEO & Executive Director Of Nufarm Limited (ASX:NUF), Gregory Hunt, Has Just Spent AU$80k Buying 2.3% More Shares
Whilst it may not be a huge deal, we thought it was good to see that the Nufarm Limited (ASX:NUF) MD, CEO & Executive Director, Gregory Hunt, recently bought AU$80k worth of stock, for AU$5.32 per share. Although the purchase is not a big one, increasing their shareholding by only 2.3%, it can be interpreted as a good sign.
See our latest analysis for Nufarm
Nufarm Insider Transactions Over The Last Year
In fact, the recent purchase by MD, CEO & Executive Director Gregory Hunt was not their only acquisition of Nufarm shares this year. They previously made an even bigger purchase of AU$138k worth of shares at a price of AU$5.51 per share. That means that an insider was happy to buy shares at above the current price of AU$5.49. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months Nufarm insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.4% of Nufarm shares, worth about AU$8.5m, according to our data. We do generally prefer see higher levels of insider ownership.
So What Do The Nufarm Insider Transactions Indicate?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Nufarm insiders are reasonably well aligned, and optimistic for the future. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Nufarm.
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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