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Tolga Kumova Just Bought 38% More Shares In Pure Alumina Limited (ASX:PUA)

Whilst it may not be a huge deal, we thought it was good to see that Tolga Kumova, who is a company insider, recently bought AU$54k worth of stock, for AU$0.009 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 38%.

See our latest analysis for Pure Alumina

The Last 12 Months Of Insider Transactions At Pure Alumina

Notably, that recent purchase by Tolga Kumova is the biggest insider purchase of Pure Alumina shares that we've seen in the last year. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.014. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

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While Pure Alumina insiders bought shares during the last year, they didn't sell. They paid about AU$0.012 on average. Although they bought at below the recent price of AU$0.014 per share, it is good to see that insiders are willing to invest in the company. You can see the insider transactions (by 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!

ASX:PUA Recent Insider Trading June 3rd 2020
ASX:PUA Recent Insider Trading June 3rd 2020

Pure Alumina is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of Pure Alumina

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Pure Alumina insiders own about AU$940k worth of shares. That equates to 25% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Pure Alumina Tell Us?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Pure Alumina 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. Our analysis shows 6 warning signs for Pure Alumina (4 are a bit concerning!) and we strongly recommend you look at these before investing.

But note: Pure Alumina 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.

Love or hate this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.

This article by Simply Wall St is general in nature. 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. Thank you for reading.