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It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in AIC Mines Limited's (ASX:A1M) case, it's fantastic news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for AIC Mines
AIC Mines Insider Transactions Over The Last Year
In fact, the recent purchase by Aaron Colleran was the biggest purchase of AIC Mines shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than AU$0.34 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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.
Happily, we note that in the last year insiders paid AU$698k for 1.64m shares. But they sold 1.14m shares for AU$366k. In total, AIC Mines insiders bought more than they sold over the last year. The average buy price was around AU$0.43. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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.
Insiders At AIC Mines Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at AIC Mines. Overall, three insiders shelled out AU$497k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.
Does AIC Mines Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests AIC Mines insiders own 2.5% of the company, worth about AU$5.0m. But they may have an indirect interest through a corporate structure that we haven't picked up on. I generally like to see higher levels of ownership.