Over the last year, a good number of insiders have significantly increased their holdings in NextNav Inc. (NASDAQ:NN). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for NextNav

The Last 12 Months Of Insider Transactions At NextNav

Over the last year, we can see that the biggest insider purchase was by insider Charles Frischer for US$9.6m worth of shares, at about US$5.17 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$7.41. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months insiders purchased 3.37m shares for US$17m. On the other hand they divested 395.36k shares, for US$2.0m. In total, NextNav insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insiders At NextNav Have Bought Stock Recently

At NextNav,over the last quarter, we have observed quite a lot more insider buying than insider selling. Insiders spent US$1.3m on shares. But insiders only sold shares worth US$598k. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. NextNav insiders own 24% of the company, currently worth about US$221m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At NextNav Tell Us?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about NextNav. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing NextNav. Every company has risks, and we've spotted 4 warning signs for NextNav you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

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