Despite Alice Queen's Pullback, Insiders Still Gained AU$57k

Alice Queen Limited (ASX:AQX) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 13% decline in the stock price. Reason being, despite the recent loss, insiders original purchase value of AU$179.3k is now worth AU$236.8k.

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.

See our latest analysis for Alice Queen

The Last 12 Months Of Insider Transactions At Alice Queen

In the last twelve months, the biggest single purchase by an insider was when Non-Executive Director James Myers bought AU$100k worth of shares at a price of AU$0.005 per share. Even though the purchase was made at a significantly lower price than the recent price (AU$0.007), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

While Alice Queen insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insiders At Alice Queen Have Bought Stock Recently

Over the last quarter, Alice Queen insiders have spent a meaningful amount on shares. Specifically, insider Christopher Morris bought AU$79k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.

Does Alice Queen Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Alice Queen insiders own 20% of the company, worth about AU$944k. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Alice Queen Insider Transactions Indicate?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of Alice Queen we think they are probably pretty confident of a bright future. While we like knowing 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. In terms of investment risks, we've identified 5 warning signs with Alice Queen and understanding these should be part of your investment process.

But note: Alice Queen may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.