The Alternate Director of Ariadne Australia Limited (ASX:ARA), Benjamin Seymour, Just Bought A Few More Shares

Even if it's not a huge purchase, we think it was good to see that Benjamin Seymour, the Alternate Director of Ariadne Australia Limited (ASX:ARA) recently shelled out AU$78k to buy stock, at AU$0.48 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

See our latest analysis for Ariadne Australia

Ariadne Australia Insider Transactions Over The Last Year

The Non-Executive Deputy Chairman Kevin Seymour made the biggest insider purchase in the last 12 months. That single transaction was for AU$1.2m worth of shares at a price of AU$0.50 each. That means that an insider was happy to buy shares at around the current price of AU$0.52. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Ariadne Australia share holders is that insiders were buying at near the current price.

Ariadne Australia insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Ariadne Australia is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Ariadne Australia Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Ariadne Australia insiders own 60% of the company, currently worth about AU$61m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Ariadne Australia Insiders?

It is good to see the recent insider purchase. 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 Ariadne Australia insiders are well aligned, and quite possibly think the share price is too low. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ariadne Australia. For instance, we've identified 2 warning signs for Ariadne Australia (1 is potentially serious) you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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