Insider Spends US$2.0m Buying More Shares In Nickel Industries

Nickel Industries Limited (ASX:NIC) shareholders (or potential shareholders) will be happy to see that the Independent Non-Executive Director, Mark Lochtenberg, recently bought a whopping AU$2.0m worth of stock, at a price of AU$1.02. While that only increased their holding size by 5.3%, it is still a big swing by our standards.

View our latest analysis for Nickel Industries

The Last 12 Months Of Insider Transactions At Nickel Industries

The Independent Non-Executive Chairman Robert Neale made the biggest insider purchase in the last 12 months. That single transaction was for AU$2.1m worth of shares at a price of AU$0.21 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.81. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Over the last year, we can see that insiders have bought 14.45m shares worth AU$6.4m. But they sold 10.00m shares for AU$2.1m. In the last twelve months there was more buying than selling by Nickel Industries insiders. They paid about AU$0.44 on average. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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).

Insider Ownership Of Nickel Industries

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Nickel Industries insiders own about AU$186m worth of shares (which is 6.7% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Nickel Industries Insiders?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Nickel Industries. That's what I like to see! 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. You'd be interested to know, that we found 3 warning signs for Nickel Industries and we suggest you have a look.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.