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Quite a few insiders invested in Nickel Creek Platinum Corp. (TSE:NCP) last year which is positive news for shareholders

·3-min read

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 Nickel Creek Platinum Corp. (TSE:NCP), it sends a favourable message to the company's shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Nickel Creek Platinum

The Last 12 Months Of Insider Transactions At Nickel Creek Platinum

There wasn't any very large single transaction over the last year, but we can still observe some trading.

While Nickel Creek Platinum insiders bought shares during the last year, they didn't sell. 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!

insider-trading-volume
insider-trading-volume

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insiders at Nickel Creek Platinum Have Bought Stock Recently

There was some insider buying at Nickel Creek Platinum over the last quarter. Insiders purchased CA$61k worth of shares in that period. It's good to see the insider buying, as well as the lack of recent sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.

Insider Ownership of Nickel Creek Platinum

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$654k worth of Nickel Creek Platinum stock, about 2.5% of the company. I generally like to see higher levels of ownership.

So What Does This Data Suggest About Nickel Creek Platinum Insiders?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Nickel Creek Platinum insiders are expecting a bright 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. For example, Nickel Creek Platinum has 4 warning signs (and 1 which is concerning) we think you should know about.

But note: Nickel Creek Platinum may not be the best stock to buy. So take a peek at this free list 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.

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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.