AKORA Resources Drops To AU$0.094, Yet Insiders May Have Sold Too Early

AKORA Resources Limited's (ASX:AKO) stock price has dropped 10% in the previous week, but insiders who sold AU$219k in stock over the past year have had less luck. Insiders would probably have been better off holding on to their shares given that the average selling price of AU$0.13 is still lower than the current share price.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for AKORA Resources

The Last 12 Months Of Insider Transactions At AKORA Resources

Over the last year, we can see that the biggest insider sale was by the insider, Geoffrey Crow, for AU$219k worth of shares, at about AU$0.13 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of AU$0.094. So it may not tell us anything about how insiders feel about the current share price. Geoffrey Crow was the only individual insider to sell shares in the last twelve months.

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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that AKORA Resources insiders own 24% of the company, worth about AU$2.7m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At AKORA Resources Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. We don't take much encouragement from the transactions by AKORA Resources insiders. But we do like the fact that insiders own a fair chunk of the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing AKORA Resources. Our analysis shows 4 warning signs for AKORA Resources (3 don't sit too well with us!) and we strongly recommend you look at them before investing.

Of course AKORA 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 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.