Investors who take an interest in Aurania Resources Ltd. (CVE:ARU) should definitely note that the Executive Chairman, Keith Barron, recently paid CA$0.45 per share to buy CA$500k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 5.4%.
View our latest analysis for Aurania Resources
The Last 12 Months Of Insider Transactions At Aurania Resources
In fact, the recent purchase by Keith Barron was the biggest purchase of Aurania Resources shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of CA$0.45 per share to be enticing. 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider bought shares at close to current prices. Keith Barron was the only individual insider to buy during the last year.
Keith Barron purchased 1.68m shares over the year. The average price per share was CA$0.53. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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 growing companies that insiders are buying.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Aurania Resources insiders own 39% of the company, worth about CA$10m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Aurania Resources Tell Us?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Aurania Resources we think they are probably pretty confident of a bright future. 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. For example, Aurania Resources has 6 warning signs (and 3 which shouldn't be ignored) we think you should know about.