In This Article:
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in AusQuest Limited's (ASX:AQD) instance, it's good news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for AusQuest
The Last 12 Months Of Insider Transactions At AusQuest
In the last twelve months, the biggest single purchase by an insider was when Non-Executive Director Christopher Ellis bought AU$539k worth of shares at a price of AU$0.008 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.01. 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.
AusQuest insiders may have bought shares in the last year, but they didn't sell any. 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.
AusQuest Insiders Bought Stock Recently
It's good to see that AusQuest insiders have made notable investments in the company's shares. In total, insiders bought AU$601k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.
Insider Ownership Of AusQuest
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 AusQuest insiders own 39% of the company, worth about AU$4.1m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At AusQuest Tell Us?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest AusQuest insiders are well aligned, and that they may think the share price is too low. 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. Case in point: We've spotted 5 warning signs for AusQuest you should be aware of, and 4 of these are a bit unpleasant.