Yahoo Finance Executive Director Dan Jauncey Just Bought A Handful Of Shares In Austral Resources Australia Ltd (ASX:AR1)
Austral Resources Australia Ltd (ASX:AR1) shareholders (or potential shareholders) will be happy to see that the Executive Director, Dan Jauncey, recently bought a whopping AU$849k worth of stock, at a price of AU$0.53. While that only increased their holding size by 0.6%, it is still a big swing by our standards.
View our latest analysis for Austral Resources Australia
The Last 12 Months Of Insider Transactions At Austral Resources Australia
Notably, that recent purchase by Dan Jauncey is the biggest insider purchase of Austral Resources Australia shares that we've seen in the last year. That means that even when the share price was higher than AU$0.43 (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. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Austral Resources Australia insiders may have bought shares in the last year, but they didn't sell any. 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!
Austral Resources Australia is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Austral Resources Australia Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Austral Resources Australia insiders own about AU$121m worth of shares (which is 61% of the company). 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 Austral Resources Australia Insider Transactions Indicate?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Austral Resources Australia insiders are well aligned, and quite possibly think the share price is too low. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Austral Resources Australia has 2 warning signs (1 can't be ignored!) that deserve your attention before going any further with your analysis.
Of course Austral Resources Australia 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
