Yahoo Finance Insiders who bought in the last 12 months lose an additional US$103k as Awalé Resources Limited (CVE:ARIC) drops to CA$4.4m
Insiders who bought US$344k worth of Awalé Resources Limited's (CVE:ARIC) stock at an average buy price of US$0.20 over the last year may be disappointed by the recent 18% decrease in the stock. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth US$241k, which is not great.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Awalé Resources
Awalé Resources Insider Transactions Over The Last Year
The CEO & Non-Executive Director Glen Parsons made the biggest insider purchase in the last 12 months. That single transaction was for CA$185k worth of shares at a price of CA$0.20 each. That means that even when the share price was higher than CA$0.14 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. We note that Glen Parsons was both the biggest buyer and the biggest seller.
Happily, we note that in the last year insiders paid CA$344k for 1.72m shares. But insiders sold 553.50k shares worth CA$107k. Overall, Awalé Resources insiders were net buyers during the last year. 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!
Awalé Resources is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Have Awalé Resources Insiders Traded Recently?
We have seen a bit of insider selling at Awalé Resources, over the last three months. Independent Non-Executive Director Eric Roth only netted CA$7.4k selling shares, in that period. It's not great to see insider selling, nor the lack of recent buyers. But the amount sold isn't enough for us to put any weight on it.
Insider Ownership Of Awalé 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 15% of Awalé Resources shares, worth about CA$661k. 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 Awalé Resources Insider Transactions Indicate?
While there has not been any insider buying in the last three months, there has been selling. However, the sales are not big enough to concern us at all. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Awalé Resources and their transactions don't cause us concern. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example, Awalé Resources has 6 warning signs (and 5 which make us uncomfortable) we think you should know about.
But note: Awalé 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, but not derivative transactions.
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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.
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