Yahoo Finance Insiders Give Up US$128k As Adamas One Stock Drops To US$0.48
Insiders who acquired US$156.9k worth of Adamas One Corp.'s (NASDAQ:JEWL) stock at an average price of US$2.62 in the past 12 months may be dismayed by the recent 28% price decline. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth US$28.8k which is not ideal.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Adamas One
Adamas One Insider Transactions Over The Last Year
The President John Grdina made the biggest insider purchase in the last 12 months. That single transaction was for US$107k worth of shares at a price of US$2.67 each. That means that an insider was happy to buy shares at above the current price of US$0.48. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. 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. John Grdina was the only individual insider to buy shares in the last twelve months.
John Grdina bought a total of 60.00k shares over the year at an average price of US$2.62. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Adamas One is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 36% of Adamas One shares, worth about US$4.3m. 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 Adamas One Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Adamas One and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Adamas One. Every company has risks, and we've spotted 4 warning signs for Adamas One (of which 2 are a bit unpleasant!) you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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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.
