Auris Minerals Gains 31%, Insider Trades Reap Benefit
Auris Minerals Limited (ASX:AUR) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 31%, resulting in a AU$5.1m rise in the company's market capitalisation, translating to a gain of 97% on their initial investment. In other words, the original AU$316.1k purchase is now worth AU$622.6k.
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.
The Last 12 Months Of Insider Transactions At Auris Minerals
Over the last year, we can see that the biggest insider purchase was by insider Robert Martin for AU$194k worth of shares, at about AU$0.0098 per share. Even though the purchase was made at a significantly lower price than the recent price (AU$0.017), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Robert Martin purchased 36.63m shares over the year. The average price per share was AU$0.0086. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
View our latest analysis for Auris Minerals
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of Auris Minerals
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. Insiders own 11% of Auris Minerals shares, worth about AU$2.3m, according to our data. However, it's possible that insiders might have an indirect interest through a more complex structure. Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Auris Minerals Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Auris Minerals shares in the last quarter. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think Auris Minerals insiders are doubting the company. 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. Case in point: We've spotted 5 warning signs for Auris Minerals you should be aware of, and 3 of these are concerning.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.