Yahoo Finance Aurania Resources Ltd. (CVE:ARU) Insiders Have Been Selling
We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Aurania Resources Ltd. (CVE:ARU).
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
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See our latest analysis for Aurania Resources
The Last 12 Months Of Insider Transactions At Aurania Resources
In the last twelve months, the biggest single purchase by an insider was when Director Alfred Lenarciak bought CA$68k worth of shares at a price of CA$2.00 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$3.47), we still think insider buying is a positive. But because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In the last twelve months insiders purchased 50850 shares for CA$104k. But insiders sold 75760 shares worth CA$201k. In total, Aurania Resources insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insiders at Aurania Resources Have Sold Stock Recently
The last three months saw some Aurania Resources insider selling. Marvin Kaiser only netted CA$50k selling shares, in that period. It's not great to see insider selling, nor the lack of recent buyers. But the selling simply isn't sufficiently substantial to be of much use as a signal.
Insider Ownership of Aurania Resources
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Aurania Resources insiders own 58% of the company, currently worth about CA$71m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Aurania Resources Insiders?
While there has not been any insider buying in the last three months, there has been selling. But given the selling was modest, we're not worried. It's great to see high levels of insider ownership, but looking back at the last year, we don't gain confidence from the Aurania Resources insiders selling. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Aurania Resources.
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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
