Yahoo Finance Yew Fei Chee Is The Non-Executive Director of Norwest Minerals Limited (ASX:NWM) And They Just Picked Up 45% More Shares
Potential Norwest Minerals Limited (ASX:NWM) shareholders may wish to note that the Non-Executive Director, Yew Fei Chee, recently bought AU$300k worth of stock, paying AU$0.10 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 45%.
View our latest analysis for Norwest Minerals
The Last 12 Months Of Insider Transactions At Norwest Minerals
In fact, the recent purchase by Yew Fei Chee was the biggest purchase of Norwest Minerals shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than AU$0.089 (the recent price), an insider wanted to purchase shares. 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. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Norwest Minerals insiders may have bought shares in the last year, but they didn't sell any. They paid about AU$0.13 on average. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Norwest Minerals 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 of Norwest Minerals
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 38% of Norwest Minerals shares, worth about AU$3.6m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Norwest Minerals Insiders?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Norwest Minerals insiders are well aligned, and that they may think the share price is too low. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 5 warning signs for Norwest Minerals you should be aware of, and 2 of these make us uncomfortable.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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. 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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