Stock Analysis

Insiders at Aquirian Limited (ASX:AQN) must be relieved they sold stock as market valuation descends to AU$24m

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By selling AU$350k worth of Aquirian Limited (ASX:AQN) stock at an average sell price of AU$0.35 over the last year, insiders seemed to have made the most of their holdings. The company's market valuation decreased by AU$3.2m after the stock price dropped 12% over the past week, but insiders were spared from painful losses.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Aquirian

The Executive Director, Gregory Patching, made the biggest insider sale in the last 12 months. That single transaction was for AU$350k worth of shares at a price of AU$0.35 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of AU$0.30. So it may not shed much light on insider confidence at current levels. Gregory Patching was the only individual insider to sell over the last year.

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!

ASX:AQN Insider Trading Volume January 28th 2023

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Does Aquirian Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Aquirian insiders own about AU$13m worth of shares (which is 55% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Aquirian Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Aquirian insider transactions don't fill us with confidence. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Aquirian. Case in point: We've spotted 3 warning signs for Aquirian you should be aware of, and 1 of these is significant.

Of course Aquirian 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.

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Find out whether Aquirian is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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