NextDecade Corporation (NASDAQ:NEXT) shareholders (or potential shareholders) will be happy to see that insider Pamela Kay Beall recently bought a whopping US$506k worth of stock, at a price of US$7.07. That purchase boosted their holding by 193%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

NextDecade Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Lead Independent Director William Vrattos bought US$3.7m worth of shares at a price of US$7.31 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$8.15. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months NextDecade insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. NextDecade insiders own 13% of the company, currently worth about US$245m 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.

So What Do The NextDecade Insider Transactions Indicate?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about NextDecade. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

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.