Insiders Buying Altair Minerals Might Wish They Invested More, Stock Gains 50%

Last week, Altair Minerals Limited (ASX:ALR) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 50% last week, resulting in a AU$4.3m increase in the company's market worth, implying a 150% gain on their initial purchase. Put another way, the original AU$100.0k acquisition is now worth AU$250.0k.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Altair Minerals

The Non Executive Chairman Mordechai Benedikt made the biggest insider purchase in the last 12 months. That single transaction was for AU$100k worth of shares at a price of AU$0.0012 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.003. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Altair Minerals

Altair Minerals is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of Altair Minerals

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. Altair Minerals insiders own 49% of the company, currently worth about AU$6.3m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Altair Minerals Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Altair Minerals shares in the last quarter. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Altair Minerals insiders feel good about the company's future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 6 warning signs (5 can't be ignored!) that you ought to be aware of before buying any shares in Altair Minerals.

Of course Altair Minerals 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.