Yahoo Finance Nutritional Growth Solutions Slides As Insider Purchases Lose Another US$143k
Insiders who acquired US$190.7k worth of Nutritional Growth Solutions Ltd.'s (ASX:NGS) stock at an average price of US$0.012 in the past 12 months may be dismayed by the recent 25% price decline. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth US$47.9k which is not ideal.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Nutritional Growth Solutions
Nutritional Growth Solutions Insider Transactions Over The Last Year
The insider John Tarrant made the biggest insider purchase in the last 12 months. That single transaction was for AU$138k worth of shares at a price of AU$0.012 each. That means that even when the share price was higher than AU$0.003 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. John Tarrant was the only individual insider to buy shares in the last twelve months.
John Tarrant bought 15.97m shares over the last 12 months at an average price of AU$0.012. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of Nutritional Growth Solutions
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. Nutritional Growth Solutions insiders own about AU$216k worth of shares. That equates to 29% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Nutritional Growth Solutions Insiders?
It doesn't really mean much that no insider has traded Nutritional Growth Solutions shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in Nutritional Growth Solutions and we see no evidence to suggest they are worried about the future. 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. To that end, you should learn about the 6 warning signs we've spotted with Nutritional Growth Solutions (including 4 which don't sit too well with us).
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 of direct interests only, but not derivative transactions or indirect interests.
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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.
