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Over the last year, a good number of insiders have significantly increased their holdings in Astral Resources NL (ASX:AAR). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Astral Resources
The Last 12 Months Of Insider Transactions At Astral Resources
The insider Simon Braham made the biggest insider purchase in the last 12 months. That single transaction was for AU$2.5m worth of shares at a price of AU$0.073 each. We do like to see buying, but this purchase was made at well below the current price of AU$0.13. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Astral Resources insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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).
Astral Resources Insiders Bought Stock Recently
It's good to see that Astral Resources insiders have made notable investments in the company's shares. insider Simon Braham spent AU$2.5m on stock, and there wasn't any selling. That shows some optimism about the company's future.
Does Astral Resources Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company 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. Insiders own 14% of Astral Resources shares, worth about AU$21m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Astral Resources Insiders?
It is good to see the recent insider purchase. 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. Given that insiders also own a fair bit of Astral Resources we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Astral Resources has 4 warning signs (3 make us uncomfortable!) that deserve your attention before going any further with your analysis.