Aura Energy Insiders Recover Some Losses, Which Stand At AU$22k

Insiders who bought AU$130.0k worth of Aura Energy Limited (ASX:AEE) stock in the last year recovered part of their losses as the stock rose by 20% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling AU$22k.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Aura Energy

The Last 12 Months Of Insider Transactions At Aura Energy

In the last twelve months, the biggest single purchase by an insider was when MD, CEO & Director Andrew Grove bought AU$100k worth of shares at a price of AU$0.18 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.15). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months Aura Energy insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Aura Energy

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 11% of Aura Energy shares, worth about AU$14m, according to our data. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Aura Energy Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Aura Energy and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Aura Energy. For example, Aura Energy has 4 warning signs (and 2 which are potentially serious) we think you should know about.

But note: Aura Energy 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 of direct interests only, but not derivative transactions or indirect interests.

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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.