 Shares of Northern Technologies Inc NASDAQ:NTIC moved higher by 1.7 from the previous closing price. Calderon Nancy E. filed a Form 4 with the SEC on Friday, July 24. The insider bought 1,000 shares at an average price of 8.60. After the transaction, the executives stake in Northern Technologies Inc. moved to 1,000 shares.Why Insider Transactions Are Important? While transactions from an insider shouldnt be used as the sole item to make an investment or trading decision, an insider buying or selling stock in their company can be a good added factor that leads to more conviction in a decision.When an insider buys stock after an important sell off, that can indicate the insiders faith in the success of the organization. Henceforth, if the stock is bought at new highs, it might be because the insider feels that the stock is not overvalued. Insiders who sell stock at new lows could be anticipating some capitulation moment. If the insider sells at new highs, it could point to the intention to take some profit and lock in a gain.Transaction Codes To Focus On Investors prefer focusing on transactions which take place in the open market, indicated in the Form 4 with codes P for purchase and S for sale. If the transaction was an open-market transaction, that means that the insider made a concious decision for the companys stock moving forward.Transaction codes other than P or S are often viewed with less conviction as they are often not tied to a decision by the exec. As an example, transaction code C indicates the conversion of an option. Transaction code A indicates the insider may have been forced to sell shares in order to receive compensation the exec was promised upon being hired by a company.See more from Benzinga Recap: Northern Technologies Q3 Earnings Earnings Scheduled For July 8, 2020C 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. 