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Over the last year, a good number of insiders have significantly increased their holdings in Astute Metals NL (ASX:ASE). 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, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Astute Metals
The Last 12 Months Of Insider Transactions At Astute Metals
In the last twelve months, the biggest single purchase by an insider was when Non-Executive Chairman Anthony Leibowitz bought AU$920k worth of shares at a price of AU$0.03 per share. That means that an insider was happy to buy shares at above the current price of AU$0.025. 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 always take careful note of the price insiders pay when purchasing 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.
Astute Metals 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!
Astute Metals 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.
Does Astute Metals Boast High Insider Ownership?
Many investors like to check how much of a company is owned by 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. Astute Metals insiders own 41% of the company, currently worth about AU$5.4m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Astute Metals Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Astute Metals shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Astute Metals insiders think the business has merit. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. When we did our research, we found 5 warning signs for Astute Metals (3 are significant!) that we believe deserve your full attention.