Yahoo Finance Non-Executive Director of Aurumin Picks Up 17% More Stock
Potential Aurumin Limited (ASX:AUN) shareholders may wish to note that the Non-Executive Director, Daniel Raihani, recently bought AU$250k worth of stock, paying AU$0.032 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 17%.
Check out our latest analysis for Aurumin
Aurumin Insider Transactions Over The Last Year
Notably, that recent purchase by Non-Executive Director Daniel Raihani was not the only time they bought Aurumin shares this year. Earlier in the year, they paid AU$0.026 per share in a AU$463k purchase. We do like to see buying, but this purchase was made at well below the current price of AU$0.04. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Daniel Raihani bought 53.81m shares over the last 12 months at an average price of AU$0.027. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Aurumin is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Aurumin 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. Aurumin insiders own about AU$3.7m worth of shares. That equates to 21% 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 Do The Aurumin Insider Transactions Indicate?
The recent insider purchase is heartening. And the longer term insider transactions also give 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 Aurumin insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Aurumin has 5 warning signs (and 3 which are significant) we think you should know about.
But note: Aurumin 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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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.
