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Whilst it may not be a huge deal, we thought it was good to see that the Aura Energy Limited (ASX:AEE) MD, CEO & Director, Andrew Grove, recently bought AU$100k worth of stock, for AU$0.18 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
See our latest analysis for Aura Energy
The Last 12 Months Of Insider Transactions At Aura Energy
Notably, that recent purchase by Andrew Grove is the biggest insider purchase of Aura Energy shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of AU$0.14. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
While Aura Energy 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 want to know exactly who sold, for how much, and when, simply click on the graph below!
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
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Our data indicates that Aura Energy insiders own about AU$13m worth of shares (which is 12% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Does This Data Suggest About Aura Energy Insiders?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Insiders likely see value in Aura Energy shares, given these transactions (along with notable insider ownership of the company). 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. At Simply Wall St, we've found that Aura Energy has 4 warning signs (2 are a bit concerning!) that deserve your attention before going any further with your analysis.