Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Over the last year, we can see that the biggest insider purchase was by President Rahim Suleman for CA$608k worth of shares, at about CA$12.31 per share. That means that an insider was happy to buy shares at above the current price of CA$9.08. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Over the last year, we can see that insiders have bought 91.93k shares worth CA$1.1m. But insiders sold 36.17k shares worth CA$463k. Overall, Neo Performance Materials insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own CA$3.4m worth of Neo Performance Materials stock, about 0.8% of the company. I generally like to see higher levels of ownership.
The fact that there have been no Neo Performance Materials insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if Neo Performance Materials insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Neo Performance Materials. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Neo Performance Materials
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