Apollo Minerals' Market Cap Up AU$2.4m Following Year Of Insider Stock Buying

Last week, Apollo Minerals Limited (ASX:AON) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 23% last week, resulting in a AU$2.4m increase in the company's market worth, implying a 12% gain on their initial purchase. As a result, the stock they originally bought for AU$270.3k is now worth AU$303.2k.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Apollo Minerals

The Last 12 Months Of Insider Transactions At Apollo Minerals

In the last twelve months, the biggest single purchase by an insider was when Non-Executive Chairman Ian Middlemas bought AU$155k worth of shares at a price of AU$0.014 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.016. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Apollo Minerals 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Apollo Minerals is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders At Apollo Minerals Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at Apollo Minerals. Not only was there no selling that we can see, but they collectively bought AU$270k worth of shares. This makes one think the business has some good points.

Does Apollo Minerals Boast High Insider Ownership?

Many investors like to check how much of a company is owned by 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. Apollo Minerals insiders own about AU$2.1m worth of shares. That equates to 17% 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 Apollo Minerals Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Apollo Minerals insiders are well aligned, and that they may think the share price is too low. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - Apollo Minerals has 3 warning signs we think you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.