Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Navigator Global Investments Limited (ASX:NGI), it sends a favourable message to the company's shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Navigator Global Investments

The Last 12 Months Of Insider Transactions At Navigator Global Investments

Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Director Suvan de Soysa for AU$240k worth of shares, at about AU$1.60 per share. That means that even when the share price was higher than AU$1.18 (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. 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.

While Navigator Global Investments 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date! insider-trading-volume

Navigator Global Investments is not the only stock insiders are buying. So take a peek at this freelist of growing companies with insider buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 11% of Navigator Global Investments shares, worth about AU$30m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.



So What Do The Navigator Global Investments Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Navigator Global Investments shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in Navigator Global Investments 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. Case in point: We've spotted 3 warning signs for Navigator Global Investments you should be aware of.

But note: Navigator Global Investments may not be the best stock to buy. So take a peek at this freelist of interesting companies with high ROE and low debt.

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.

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