Aurelia Metals Limited (ASX:AMI) shareholders (or potential shareholders) will be happy to see that the Non-Executive Director, Franklyn Brazil, recently bought a whopping AU$4.5m worth of stock, at a price of AU$0.45. While that only increased their holding size by 2.4%, it is still a big swing by our standards.
Aurelia Metals Insider Transactions Over The Last Year
In fact, the recent purchase by Franklyn Brazil was the biggest purchase of Aurelia Metals shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than AU$0.40 (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. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Franklyn Brazil was the only individual insider to buy during the last year.
Franklyn Brazil purchased 14.00m shares over the year. The average price per share was AU$0.44. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Check out our latest analysis for Aurelia Metals
Aurelia Metals is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Does Aurelia Metals 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. It's great to see that Aurelia Metals insiders own 28% of the company, worth about AU$190m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Aurelia Metals Insider Transactions Indicate?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Aurelia Metals insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Aurelia Metals. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Aurelia Metals.
But note: Aurelia Metals 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 of direct interests only, but not derivative transactions or indirect interests.
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