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Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Avira Resources Limited (ASX:AVW), that sends out a positive message to the company's shareholders.
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.
Check out our latest analysis for Avira Resources
The Last 12 Months Of Insider Transactions At Avira Resources
The insider Jason Peterson made the biggest insider purchase in the last 12 months. That single transaction was for AU$216k worth of shares at a price of AU$0.0033 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.006. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Happily, we note that in the last year insiders paid AU$226k for 68.00m shares. But insiders sold 5.17m shares worth AU$65k. In the last twelve months there was more buying than selling by Avira Resources insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, 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. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insiders at Avira Resources Have Bought Stock Recently
It's good to see that Avira Resources insiders have made notable investments in the company's shares. Overall, two insiders shelled out AU$226k for shares in the company -- and none sold. This makes one think the business has some good points.
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. It appears that Avira Resources insiders own 24% of the company, worth about AU$2.5m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Avira Resources Insiders?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Avira Resources insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Avira Resources. To help with this, we've discovered 5 warning signs (3 are potentially serious!) that you ought to be aware of before buying any shares in Avira Resources.