Advertisement
Australia markets open in 2 hours 45 minutes
  • ALL ORDS

    8,206.10
    +72.70 (+0.89%)
     
  • AUD/USD

    0.6776
    +0.0014 (+0.20%)
     
  • ASX 200

    7,959.30
    +69.70 (+0.88%)
     
  • OIL

    82.18
    -0.03 (-0.04%)
     
  • GOLD

    2,416.00
    -4.70 (-0.19%)
     
  • Bitcoin AUD

    89,017.38
    +2,501.36 (+2.89%)
     
  • CMC Crypto 200

    1,253.14
    +54.57 (+4.55%)
     

Insider Stock Buying Reaches CA$1.61m On Almonty Industries

Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Almonty Industries Inc. (TSE:AII), it sends a favourable message to the company's shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Almonty Industries

The Last 12 Months Of Insider Transactions At Almonty Industries

In the last twelve months, the biggest single purchase by an insider was when Non-Independent Director Daniel D'Amato bought CA$508k worth of shares at a price of CA$0.46 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$0.65), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

ADVERTISEMENT

In the last twelve months Almonty Industries insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
insider-trading-volume

Almonty Industries 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.

Insiders At Almonty Industries Have Bought Stock Recently

Over the last quarter, Almonty Industries insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought CA$538k worth of shares. This could be interpreted as suggesting a positive outlook.

Does Almonty Industries Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Almonty Industries insiders own about CA$21m worth of shares. That equates to 13% of the company. 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 Does This Data Suggest About Almonty Industries Insiders?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Almonty Industries insiders are well aligned, and that they may think the share price is too low. 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. Case in point: We've spotted 1 warning sign for Almonty Industries you should be aware of.

But note: Almonty Industries 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.

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.