Whilst it may not be a huge deal, we thought it was good to see that the Neo Performance Materials Inc. (TSE:NEO) CEO, President & Director, Rahim Suleman, recently bought CA$103k worth of stock, for CA$6.89 per share. Although the purchase is not a big one, increasing their shareholding by only 9.6%, it can be interpreted as a good sign.

See our latest analysis for Neo Performance Materials

The Last 12 Months Of Insider Transactions At Neo Performance Materials

The Independent Director Yadin Rozov made the biggest insider purchase in the last 12 months. That single transaction was for CA$263k worth of shares at a price of CA$8.66 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$6.79). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months Neo Performance Materials insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date! insider-trading-volume

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this freelist of growing companies that insiders are buying.

Insider Ownership Of Neo Performance Materials

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Neo Performance Materials insiders have about 0.9% of the stock, worth approximately CA$2.7m. We prefer to see high levels of insider ownership.



So What Do The Neo Performance Materials Insider Transactions Indicate?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Neo Performance Materials insiders are reasonably well aligned, 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. Case in point: We've spotted 1 warning sign for Neo Performance Materials you should be aware of.

But note: Neo Performance Materials may not be the best stock to buy. So take a peek at this freelist 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 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.