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Potential AIC Mines Limited (ASX:A1M) shareholders may wish to note that the MD, CEO & Director, Aaron Colleran, recently bought AU$245k worth of stock, paying AU$0.49 for each share. Although the purchase only increased their holding by 4.5%, it is still a solid purchase in our view.
View our latest analysis for AIC Mines
AIC Mines Insider Transactions Over The Last Year
In fact, the recent purchase by Aaron Colleran was the biggest purchase of AIC Mines shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.34). 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.
Happily, we note that in the last year insiders paid AU$698k for 1.64m shares. But insiders sold 1.14m shares worth AU$366k. In the last twelve months there was more buying than selling by AIC Mines insiders. The average buy price was around AU$0.43. This is nice to see since it implies that insiders might see value around current prices. 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 plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
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. Our data suggests AIC Mines insiders own 2.5% of the company, worth about AU$5.0m. But they may have an indirect interest through a corporate structure that we haven't picked up on. I generally like to see higher levels of ownership.
So What Does This Data Suggest About AIC Mines Insiders?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that AIC Mines insiders are reasonably well aligned, and optimistic for the future. 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 AIC Mines is showing 3 warning signs in our investment analysis, and 1 of those can't be ignored...