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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in AIC Mines Limited's (ASX:A1M) instance, it's good news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for AIC Mines
AIC Mines Insider Transactions Over The Last Year
The MD, CEO & Director Aaron Colleran made the biggest insider purchase in the last 12 months. That single transaction was for AU$245k worth of shares at a price of AU$0.49 each. That means that an insider was happy to buy shares at above the current price of AU$0.42. 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. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Over the last year, we can see that insiders have bought 992.31k shares worth AU$497k. But they sold 700.00k shares for AU$210k. Overall, AIC Mines insiders were net buyers during the last year. 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!
AIC Mines is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
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. Our data suggests AIC Mines insiders own 2.4% of the company, worth about AU$5.8m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We prefer to see high levels of insider ownership.
What Might The Insider Transactions At AIC Mines Tell Us?
The fact that there have been no AIC Mines insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more AIC Mines stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 2 warning signs for AIC Mines (1 can't be ignored!) and we strongly recommend you look at them before investing.