Newpark Resources, Inc. (NYSE:NR) shareholders (or potential shareholders) will be happy to see that insider Bradley Radoff recently bought a whopping US$1.1m worth of stock, at a price of US$1.02. Not only is that a big swing, but it increased their holding size by 22%, which is definitely great to see.
See our latest analysis for Newpark Resources
The Last 12 Months Of Insider Transactions At Newpark Resources
Notably, that recent purchase by Bradley Radoff is the biggest insider purchase of Newpark Resources shares that we've seen in the last year. That means that even when the share price was higher than US$3.59 (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. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. Notably Bradley Radoff was also the biggest seller.
In the last twelve months insiders purchased 1.14m shares for US$1.2m. But they sold 10.00k shares for US$37k. In the last twelve months there was more buying than selling by Newpark Resources insiders. Their average price was about US$1.05. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Newpark Resources is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
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. Insiders own 10% of Newpark Resources shares, worth about US$34m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Newpark Resources Insiders?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Newpark Resources shares, given these transactions (along with notable insider ownership of the company). 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. Be aware that Newpark Resources is showing 3 warning signs in our investment analysis, and 2 of those are significant...