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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in ASA Gold and Precious Metals Limited's (NYSE:ASA) 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 do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for ASA Gold and Precious Metals
The Last 12 Months Of Insider Transactions At ASA Gold and Precious Metals
Over the last year, we can see that the biggest insider purchase was by Chief Operating Officer Alexander Merk for US$388k worth of shares, at about US$15.19 per share. We do like to see buying, but this purchase was made at well below the current price of US$21.96. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While ASA Gold and Precious Metals insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
ASA Gold and Precious Metals 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
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From looking at our data, insiders own US$3.2m worth of ASA Gold and Precious Metals stock, about 0.8% of the company. We consider this fairly low insider ownership.
What Might The Insider Transactions At ASA Gold and Precious Metals Tell Us?
The fact that there have been no ASA Gold and Precious Metals insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think ASA Gold and Precious Metals insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing ASA Gold and Precious Metals. For example, ASA Gold and Precious Metals has 3 warning signs (and 1 which can't be ignored) we think you should know about.