Insiders who purchased NN, Inc. (NASDAQ:NNBR) stock last year recover some losses which currently stand at US$47k

Insiders who bought US$329k worth of NN, Inc. (NASDAQ:NNBR) stock in the last year recovered part of their losses as the stock rose by 24% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled US$47k since the time of purchase.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for NN

NN Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when President Warren Veltman bought US$119k worth of shares at a price of US$2.39 per share. That means that an insider was happy to buy shares at above the current price of US$2.05. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing 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.

While NN 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insiders At NN Have Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at NN. Insiders bought US$45k worth of shares in that time. It's great to see that insiders are only buying, not selling. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.

Insider Ownership Of NN

Many investors like to check how much of a company is owned by insiders. 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$3.3m worth of NN stock, about 3.7% of the company. We consider this fairly low insider ownership.

What Might The Insider Transactions At NN Tell Us?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it'd be more encouraging if NN insiders bought more shares in the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - NN has 2 warning signs we think you should be aware of.

Of course NN may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

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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.

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