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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Neo Performance Materials Inc.'s (TSE:NEO) instance, it's good news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Neo Performance Materials
Neo Performance Materials Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by CEO, President & Director Rahim Suleman for CA$363k worth of shares, at about CA$6.05 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$7.82. 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.
In the last twelve months Neo Performance Materials insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Does Neo Performance Materials Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own CA$4.3m worth of Neo Performance Materials stock, about 1.3% of the company. We consider this fairly low insider ownership.
So What Do The Neo Performance Materials Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Neo Performance Materials shares in the last quarter. 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. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that Neo Performance Materials has 1 warning sign and it would be unwise to ignore it.