When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Astra Exploration Inc.'s (CVE:ASTR) instance, it's good news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Astra Exploration
The Last 12 Months Of Insider Transactions At Astra Exploration
Over the last year, we can see that the biggest insider purchase was by insider Peter Marrone for CA$450k worth of shares, at about CA$0.11 per share. So it's clear an insider wanted to buy, at around the current price, which is CA$0.12. 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 do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Astra Exploration share holders is that insiders were buying at near the current price.
While Astra Exploration insiders bought shares during the last year, they didn't sell. 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. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Have Astra Exploration Insiders Traded Recently?
Over the last three months, we've seen a bit of insider buying at Astra Exploration. CEO & Director Brian Miller bought CA$12k worth of shares in that time. We like it when there are only buyers, and no sellers. However, in this case the amount invested recently is quite small.
Does Astra Exploration Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Astra Exploration insiders own 46% of the company, worth about CA$2.6m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.