Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Nickel Creek Platinum Corp. (TSE:NCP), it sends a favourable message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Nickel Creek Platinum
In the last twelve months, the biggest single purchase by an insider was when President Stuart Harshaw bought CA$77k worth of shares at a price of CA$0.09 per share. That means that an insider was happy to buy shares at above the current price of CA$0.085. 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. 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.
While Nickel Creek Platinum insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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).
Does Nickel Creek Platinum 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, Nickel Creek Platinum insiders have about 2.7% of the stock, worth approximately CA$908k. I generally like to see higher levels of ownership.
So What Does This Data Suggest About Nickel Creek Platinum Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Nickel Creek Platinum stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Nickel Creek Platinum. When we did our research, we found 4 warning signs for Nickel Creek Platinum (1 is potentially serious!) that we believe deserve your full attention.
But note: Nickel Creek Platinum may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.