Yahoo Finance Nano Labs Up 62%, Insider Buyers Are Up 16%
Nano Labs Ltd (NASDAQ:NA) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 62%, resulting in a US$16m rise in the company's market capitalisation, translating to a gain of 16% on their initial investment. Put another way, the original CN¥10.00m acquisition is now worth CN¥11.6m.
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.
See our latest analysis for Nano Labs
Nano Labs Insider Transactions Over The Last Year
The Chairman & CEO Jianping Kong made the biggest insider purchase in the last 12 months. That single transaction was for US$7.0m worth of shares at a price of US$0.52 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$0.61. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Nano Labs insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Nano Labs 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.
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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Nano Labs insiders own 59% of the company, worth about US$25m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Nano Labs Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Nano Labs shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like Nano Labs insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 4 warning signs for Nano Labs (3 are concerning!) that we believe deserve your full attention.
Of course Nano Labs may not be the best stock to buy. So you may wish to see this free collection of high quality 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
