Asara Resources Insiders Land Bargain With Gains Of AU$7.3m
Asara Resources Limited (ASX:AS1) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 14% decline in the stock price. Even after accounting for the recent loss, the AU$11.4m worth of stock purchased by them is now worth AU$18.8m or in other words, their investment continues to give good returns.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Asara Resources Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider William Paterson for AU$11m worth of shares, at about AU$0.076 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.13. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
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!
See our latest analysis for Asara Resources
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 Asara 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. We usually like to see fairly high levels of insider ownership. Insiders own 14% of Asara Resources shares, worth about AU$34m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Asara Resources Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Asara Resources shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Asara Resources and their transactions don't cause us concern. 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 3 warning signs for Asara Resources (2 are a bit concerning!) and we strongly recommend you look at these before investing.
Of course Asara Resources may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.