Over the past year, a number of National Research Corporation (NASDAQ:NRC) insiders have sold significant stakes in the company, which may have piqued investor interest. There are many explanations for insider selling, so when assessing insider trading, it’s usually more helpful to know whether insiders have been buying. However, shareholders should look deeper if multiple insiders have been selling shares over a period of time.
Insider trading isn’t the most important thing when it comes to long-term investing, but logically you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis from National Research.
Insider transactions at National Research over the past 12 months
Insider Thomas Richardson made the biggest insider sale in the last 12 months. In that single transaction, US$24 million worth of shares traded at a price of US$4,0.54 per share. Insider sales are negative, but for us it’s even more negative if the stock sells at a lower price. It’s some comfort that this sale took place at a price well above the current share price of $17.96. So current levels may not shed much light on insider confidence.
National Research insiders didn’t buy any shares in the company last year. The chart below depicts insider transactions (by companies and individuals) over the past year. Click on the chart to see all individual trades including stock price, individual, and date.
NasdaqGS:NRC Insider Trading Volume October 27, 2024
If you are like me, you will not want to miss this free list of small-cap stocks that are not only being bought by insiders, but also have attractive valuations.
Insider ownership
If you are a common shareholder, it may be worth checking how many shares are held by company insiders. We think it’s a good sign if insiders own a significant number of shares in the company. It’s great to see that National Research insiders own 37% of the company’s shares, worth about US$158m. I like to see this level of insider ownership. This is because management is more likely to have the best interests of shareholders in mind.
So what does this data suggest about national research insiders?
There were no insider transactions in the last three months, which doesn’t mean much. While we’re happy about National Research’s high insider ownership, we can’t say the same about the sale of shares. It’s good to be aware of what’s going on with insider ownership and transactions, but we also always consider what risks a stock faces before making any investment decisions. At Simply Wall St, National Research found 3 warning signs (1 is a bit concerning!) you should be aware of before proceeding with your analysis.
Of course, National Research may not be the best stock to buy. Therefore, you may want to take a look at this free collection of quality companies.
For the purposes of this article, insiders are individuals who report their transactions to the relevant regulatory body. The Company currently only accounts for open market transactions and private dispositions of direct profits, and does not account for derivative transactions or indirect profits.
Evaluation is complex, but we will simplify it here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodologies, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
