Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Navigator Global Investments Limited (ASX:NGI), that sends out a positive message to the company’s shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
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In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Director Lindsay Megan Wright bought AU$209k worth of shares at a price of AU$2.09 per share. We do like to see buying, but this purchase was made at well below the current price of AU$2.94. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn’t tell us much about what they think of current prices.
While Navigator Global Investments insiders bought shares during the last year, they didn’t sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Check out our latest analysis for Navigator Global Investments
Navigator Global Investments is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Over the last quarter, Navigator Global Investments insiders have spent a meaningful amount on shares. Overall, two insiders shelled out AU$240k for shares in the company — and none sold. This makes one think the business has some good points.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it’s a good sign if insiders own a significant number of shares in the company. Navigator Global Investments insiders own about AU$100m worth of shares. That equates to 7.0% of the company. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Navigator Global Investments. Nice! 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 instance, we’ve identified 2 warning signs for Navigator Global Investments (1 is potentially serious) you should be aware of.