Insiders were net buyers of Nicola Mining Inc.'s (CVE:NIM ) stock during the past year. That is, insiders bought more stock than they sold.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Nicola Mining

The Last 12 Months Of Insider Transactions At Nicola Mining

The Independent Chairman Frank Hogel made the biggest insider purchase in the last 12 months. That single transaction was for CA$100k worth of shares at a price of CA$0.20 each. Even though the purchase was made at a significantly lower price than the recent price (CA$0.31), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Nicola Mining is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Nicola Mining

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. Our data suggests Nicola Mining insiders own 3.5% of the company, worth about CA$1.8m. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Nicola Mining Tell Us?

The fact that there have been no Nicola Mining insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Nicola Mining stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Nicola Mining. For example, Nicola Mining has 3 warning signs (and 1 which can't be ignored) we think you should know about.

But note: Nicola Mining 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 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.