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We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Ariadne Australia Limited (ASX:ARA), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
We don’t think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
See our latest analysis for Ariadne Australia
Ariadne Australia Insider Transactions Over The Last Year
Executive Director Gary Weiss made the biggest insider sale in the last 12 months. That single transaction was for AU$7.0m worth of shares at a price of AU$0.70 each. So we know that an insider sold shares at around the present share price of AU$0.63. While their view may have changed since the sale, this is not a particularly positive fact. We usually pause to reflect on the potential that a stock has a high valuation, if insiders have been selling at around the current price. Gary Weiss was the only individual insider to sell over the last year.
Happily, we note that in the last year insiders paid AU$4.2m for 6.00m shares. But insiders sold 11.90m shares worth AU$8.3m. Gary Weiss divested 11.90m shares over the last 12 months at an average price of AU$0.70. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Ariadne Australia better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Ariadne Australia Insiders Are Selling The Stock
We’ve seen more insider selling than insider buying at Ariadne Australia recently. We note Gary Weiss cashed in AU$8.3m worth of shares. On the flip side, insiders spent AU$4.2m on purchasing shares (as mentioned above). Generally this level of net selling might be considered a bit bearish.