Independent Non-Executive Director of AIC Mines Picks Up 157% More Stock

Potential AIC Mines Limited (ASX:A1M) shareholders may wish to note that the Independent Non-Executive Director, Brett Montgomery, recently bought AU$156k worth of stock, paying AU$0.35 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 157%.

Check out our latest analysis for AIC Mines

The Last 12 Months Of Insider Transactions At AIC Mines

In the last twelve months, the biggest single purchase by an insider was when MD, CEO & Director Aaron Colleran bought AU$250k worth of shares at a price of AU$0.45 per share. That means that even when the share price was higher than AU$0.32 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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.

AIC Mines insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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).

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data suggests AIC Mines insiders own 3.2% of the company, worth about AU$4.8m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We consider this fairly low insider ownership.

What Might The Insider Transactions At AIC Mines Tell Us?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that AIC Mines insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing AIC Mines. At Simply Wall St, we found 2 warning signs for AIC Mines that deserve your attention before buying any shares.

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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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.