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Altona Rare Earths Plc (LON:REE) shareholders (or potential shareholders) will be happy to see that the CFO & Director, Louise Adrian, recently bought a whopping UK£2.1m worth of stock, at a price of UK£2.01. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 31%.
View our latest analysis for Altona Rare Earths
Altona Rare Earths Insider Transactions Over The Last Year
In fact, the recent purchase by Louise Adrian was the biggest purchase of Altona Rare Earths shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of UK£0.017. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. We note that Louise Adrian was also the biggest seller.
Over the last year, we can see that insiders have bought 5.29m shares worth UK£2.1m. On the other hand they divested 3.31m shares, for UK£53k. In the last twelve months there was more buying than selling by Altona Rare Earths insiders. Their average price was about UK£0.40. I'd consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Altona Rare Earths 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
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Altona Rare Earths insiders own about UK£1.1m worth of shares. That equates to 39% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Altona Rare Earths Tell Us?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Insiders likely see value in Altona Rare Earths shares, given these transactions (along with notable insider ownership of the company). 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. Every company has risks, and we've spotted 4 warning signs for Altona Rare Earths (of which 3 shouldn't be ignored!) you should know about.