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Potential Aurania Resources Ltd. (CVE:ARU) shareholders may wish to note that the Executive Chairman, Keith Barron, recently bought CA$600k worth of stock, paying CA$0.30 for each share. Although the purchase only increased their holding by 4.2%, it is still a solid purchase in our view.
The Last 12 Months Of Insider Transactions At Aurania Resources
Notably, that recent purchase by Keith Barron is the biggest insider purchase of Aurania Resources shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of CA$0.26. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for 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.
In the last twelve months Aurania Resources insiders were buying shares, but not selling. The average buy price was around CA$0.34. 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 want to know exactly who sold, for how much, and when, simply click on the graph below!
Check out our latest analysis for Aurania Resources
Aurania Resources is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
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. Aurania Resources insiders own 47% of the company, currently worth about CA$13m 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.
What Might The Insider Transactions At Aurania Resources Tell Us?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Aurania Resources insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that Aurania Resources is showing 6 warning signs in our investment analysis, and 2 of those don't sit too well with us...