Executive Chairman of Aurania Resources Keith Barron Buys 7.5% More Shares
Investors who take an interest in Aurania Resources Ltd. (CVE:ARU) should definitely note that the Executive Chairman, Keith Barron, recently paid CA$0.12 per share to buy CA$500k worth of the stock. Although the purchase only increased their holding by 7.5%, it is still a solid purchase in our view.
Aurania Resources Insider Transactions Over The Last Year
Notably, that recent purchase by Executive Chairman Keith Barron was not the only time they bought Aurania Resources shares this year. They previously made an even bigger purchase of CA$689k worth of shares at a price of CA$0.12 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$0.20), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While Aurania Resources insiders bought shares during the last year, they didn't sell. The average buy price was around CA$0.17. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for Aurania Resources
Aurania Resources is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership Of Aurania Resources
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Aurania Resources insiders own 42% of the company, worth about CA$11m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Aurania Resources Tell Us?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Aurania Resources. That's what I like to see! 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. At Simply Wall St, we've found that Aurania Resources has 6 warning signs (4 are significant!) that deserve your attention before going any further with your analysis.
But note: Aurania Resources may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.