Albion Resources' Market Cap Up AU$1.4m Following Year Of Insider Stock Buying

Albion Resources Limited (ASX:ALB) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 14%, resulting in a AU$1.4m rise in the company's market capitalisation, translating to a gain of 87% on their initial investment. As a result, the stock they originally bought for AU$238.8k is now worth AU$445.9k.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Albion Resources

The Independent Non-Executive Chairman Steven Formica made the biggest insider purchase in the last 12 months. That single transaction was for AU$131k worth of shares at a price of AU$0.045 each. Even though the purchase was made at a significantly lower price than the recent price (AU$0.084), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Albion Resources 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!

View our latest analysis for Albion Resources

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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. We usually like to see fairly high levels of insider ownership. Albion Resources insiders own about AU$3.0m worth of shares. That equates to 25% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Albion Resources Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Albion Resources shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Albion Resources insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Albion Resources. In terms of investment risks, we've identified 5 warning signs with Albion Resources and understanding these should be part of your investment process.

Of course Albion 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.