Yahoo Finance Alderan Resources Insiders Still AU$34k Away From Original Investment Value
Insiders who bought AU$315.1k worth of Alderan Resources Limited (ASX:AL8) stock in the last year have seen some of their losses recouped as the stock gained 11% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling AU$34k.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Alderan Resources
Alderan Resources Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when insider Niv Dagan bought AU$215k worth of shares at a price of AU$0.006 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.005). Their view may have changed since then, but at least it shows they felt optimistic at the time. 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. Niv Dagan was the only individual insider to buy during the last year.
Niv Dagan purchased 56.12m shares over the year. The average price per share was AU$0.0056. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Alderan Resources is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Alderan Resources insiders own 25% of the company, worth about AU$1.4m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Alderan Resources Insider Transactions Indicate?
The fact that there have been no Alderan Resources insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Insiders own shares in Alderan Resources and we see no evidence to suggest they are worried about the future. 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. You'd be interested to know, that we found 6 warning signs for Alderan Resources and we suggest you have a look.
Of course Alderan 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.
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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.
