With Noble Helium Up 35%, Insider Buyers Count Their Returns \
Last week, Noble Helium Limited (ASX:NHE) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 35% last week, resulting in a AU$12m increase in the company's market worth. Put another way, the original AU$100k acquisition is now worth AU$140k.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Noble Helium
Noble Helium Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Executive Chairman Shaun Scott for AU$100k worth of shares, at about AU$0.15 per share. We do like to see buying, but this purchase was made at well below the current price of AU$0.21. 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.
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!
Noble Helium is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Noble Helium insiders own 42% of the company, worth about AU$20m. 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 Noble Helium Insiders?
It doesn't really mean much that no insider has traded Noble Helium shares in the last quarter. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like Noble Helium insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Noble Helium. Every company has risks, and we've spotted 7 warning signs for Noble Helium (of which 2 are potentially serious!) you should know about.
Of course Noble Helium 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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