We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Ariana Resources plc (LON:AAU).
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, such insiders must disclose their trading activities, and not trade on inside information.
We don’t think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
The Last 12 Months Of Insider Transactions At Ariana Resources
In the last twelve months, the biggest single purchase by an insider was when Executive Chairman & Company Secretary Michael de Villiers bought UK£398k worth of shares at a price of UK£0.025 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£0.035. Because it occurred at a lower valuation, it doesn’t tell us much about whether insiders might find today’s price attractive.
Michael de Villiers purchased 22.02m shares over the year. The average price per share was UK£0.024. The chart below shows insider transactions (by 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).
Are Ariana Resources Insiders Buying Or Selling?
We saw Executive Chairman & Company Secretary Michael de Villiers buy shares worth UK£538k in the last three months. That’s only a tiny bit more than the sales, worth UK£537k. Overall, we don’t think these recent trades are particularly informative, one way or the other.
Does Ariana Resources Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. From our data, it seems that Ariana Resources insiders own 9.8% of the company, worth about UK£3.6m. We do generally prefer see higher levels of insider ownership.
So What Do The Ariana Resources Insider Transactions Indicate?
Insider buying and selling have balanced each other out in the last three months, so we can’t deduct anything useful from these recent trades. On a brighter note, the transactions over the last year are encouraging. We’d like to see bigger individual holdings. However, we don’t see anything to make us think Ariana Resources insiders are doubting the company. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Ariana Resources.
Of course Ariana Resources may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned.
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