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Last week, Aris Mining Corporation (TSE:ARIS) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 10% last week, resulting in a CA$99m increase in the company's market worth, implying a 18% gain on their initial purchase. As a result, their original purchase of US$1.38m worth of stock is now worth US$1.63m.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Aris Mining
Aris Mining Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Senior Vice President of Technical Services, Cornelius Lourens, sold CA$847k worth of shares at a price of CA$6.22 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of CA$6.36. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was 100% of Cornelius Lourens's holding. Notably Cornelius Lourens was also the biggest buyer, having purchased CA$1.4m worth of shares.
In the last twelve months insiders purchased 255.66k shares for CA$1.4m. But insiders sold 203.62k shares worth CA$1.3m. In total, Aris Mining 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 always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insiders At Aris Mining Have Sold Stock Recently
The last three months saw some Aris Mining insider selling. CA$104k worth of shares were sold by Executive Vice President Douglas Bowlby. But at least we saw CA$78k worth of buying. While it's not great to see insider selling, the net amount sold isn't enough for us to want to read anything into it.
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. Aris Mining insiders own about CA$31m worth of shares. That equates to 2.8% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.