Yahoo Finance With stock up 14%, Insiders of AusQuest Limited (ASX:AQD) must be wishing they had bought more last year
AusQuest Limited (ASX:AQD) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 14% resulting in a AU$2.5m addition to the company’s market value. As a result, their original purchase of AU$450k worth of stock is now worth AU$536k.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for AusQuest
AusQuest Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Non-Executive Director Christopher Ellis bought AU$400k worth of shares at a price of AU$0.021 per share. We do like to see buying, but this purchase was made at well below the current price of AU$0.025. 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.
In the last twelve months AusQuest insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of AusQuest
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It appears that AusQuest insiders own 33% of the company, worth about AU$6.7m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At AusQuest Tell Us?
It doesn't really mean much that no insider has traded AusQuest shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in AusQuest and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing AusQuest. Our analysis shows 5 warning signs for AusQuest (2 are a bit concerning!) and we strongly recommend you look at these before investing.
But note: AusQuest 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, but not derivative transactions.
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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.