Trade Alert: The Executive Chairman Of Aurania Resources Ltd. (CVE:ARU), Keith Barron, Has Just Spent CA$3.3m Buying 33% More Shares
Those following along with Aurania Resources Ltd. (CVE:ARU) will no doubt be intrigued by the recent purchase of shares by Keith Barron, Executive Chairman of the company, who spent a stonking CA$3.3m on stock at an average price of CA$0.46. Not only is that a big swing, but it increased their holding size by 33%, which is definitely great to see.
See our latest analysis for Aurania Resources
Aurania Resources Insider Transactions Over The Last Year
Notably, that recent purchase by Keith Barron is the biggest insider purchase of Aurania Resources shares that we've seen in the last year. That means that even when the share price was higher than CA$0.44 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Keith Barron was the only individual insider to buy during the last year.
Keith Barron bought 8.31m shares over the last 12 months at an average price of CA$0.46. 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!
Aurania Resources is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Aurania Resources Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Aurania Resources insiders own 45% of the company, currently worth about CA$13m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Aurania Resources Insiders?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Aurania Resources. Looks promising! 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. For example, Aurania Resources has 6 warning signs (and 4 which are significant) we think you should know about.
Of course Aurania 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, 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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