An Insider Of NexMetals Mining Picks Up 21% More Stock
Investors who take an interest in NexMetals Mining Corp. (NASDAQ:NEXM) should definitely note that insider Mark Christensen recently paid US$2.70 per share to buy US$175k worth of the stock. That’s a very decent purchase to our minds and it grew their holding by a solid 21%.
The Last 12 Months Of Insider Transactions At NexMetals Mining
In fact, the recent purchase by insider Mark Christensen was not their only acquisition of NexMetals Mining shares this year. Earlier in the year, they paid US$4.06 per share in a US$392k purchase. That means that even when the share price was higher than US$2.49 (the recent price), an insider wanted to purchase shares. 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. 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.
In the last twelve months NexMetals Mining insiders were buying shares, but not selling. The average buy price was around US$3.56. I’d consider this a positive as it suggests insiders see value at around the current price. 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!
View our latest analysis for NexMetals Mining
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insider Ownership Of NexMetals Mining
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it’s a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own US$2.7m worth of NexMetals Mining stock, about 3.0% of the company. We consider this fairly low insider ownership.
What Might The Insider Transactions At NexMetals Mining Tell Us?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that NexMetals Mining insiders are expecting a bright future. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. For example, NexMetals Mining has 6 warning signs (and 3 which are a bit unpleasant) we think you should know about.
