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Jun 23, 2023

Independent Non

Stock Analysis Those following along with Nickel Industries Limited (ASX:NIC) will no doubt be intrigued by the recent purchase of shares by Mark Lochtenberg, Independent Non-Executive Director of the

Stock Analysis

Those following along with Nickel Industries Limited (ASX:NIC) will no doubt be intrigued by the recent purchase of shares by Mark Lochtenberg, Independent Non-Executive Director of the company, who spent a stonking AU$2.0m on stock at an average price of AU$1.02. While that only increased their holding size by 5.3%, it is still a big swing by our standards.

View our latest analysis for Nickel Industries

The Independent Non-Executive Chairman Robert Neale made the biggest insider purchase in the last 12 months. That single transaction was for AU$2.1m worth of shares at a price of AU$0.21 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.82. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Over the last year, we can see that insiders have bought 14.45m shares worth AU$6.4m. On the other hand they divested 10.00m shares, for AU$2.1m. In the last twelve months there was more buying than selling by Nickel Industries insiders. The average buy price was around AU$0.44. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. 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!

Nickel Industries is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Nickel Industries insiders own about AU$186m worth of shares (which is 6.6% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Nickel Industries. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Nickel Industries. While conducting our analysis, we found that Nickel Industries has 3 warning signs and it would be unwise to ignore these.

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, but not derivative transactions.

Find out whether Nickel Industries is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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.

Nickel Industries Limited engages in nickel ore mining and nickel pig iron production operations in Singapore and Indonesia.

High growth potential with acceptable track record.