Quite a few insiders have dramatically grown their holdings in NextNav Inc. (NASDAQ:NN) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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. We do like to see buying, but this purchase was made at well below the current price of US$17.14. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Over the last year, we can see that insiders have bought 3.93m shares worth US$21m. But insiders sold 172.85k shares worth US$1.0m. In the last twelve months there was more buying than selling by NextNav insiders. 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!

NextNav is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

NextNav Insiders Are Selling The Stock

Over the last three months, we've seen a bit of insider selling at NextNav. Insiders only netted US$22k selling shares, in that period. Neither the lack of buying nor the presence of selling is heartening. But the amount sold isn't enough for us to put any weight on it.

Insider Ownership Of NextNav

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. NextNav insiders own 24% of the company, currently worth about US$522m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The NextNav Insider Transactions Indicate?

We did not see any insider buying in the last three months, but we did see selling. But the sales were small, so we're not concerned. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, NextNav insiders feel good about the company's future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 3 warning signs for NextNav you should be aware of.

But note: NextNav 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.