When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Aldebaran Resources Inc.'s (CVE:ALDE) 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.
See our latest analysis for Aldebaran Resources
Aldebaran Resources Insider Transactions Over The Last Year
Notably, that recent purchase by Kevin Heather is the biggest insider purchase of Aldebaran Resources 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 CA$0.85. 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. 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 Aldebaran Resources 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Aldebaran Resources is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At Aldebaran Resources Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Aldebaran Resources. Not only was there no selling that we can see, but they collectively bought CA$515k worth of shares. This makes one think the business has some good points.
Does Aldebaran Resources Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Insiders own 5.6% of Aldebaran Resources shares, worth about CA$7.1m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At Aldebaran Resources Tell Us?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Aldebaran Resources stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Aldebaran Resources. Case in point: We've spotted 4 warning signs for Aldebaran Resources you should be aware of, and 2 of these are potentially serious.