Insider Buyers Lose Additional AU$186k As Astute Metals Dips To AU$14m

Insiders who acquired AU$547.7k worth of Astute Metals NL's (ASX:ASE) stock at an average price of AU$0.05 in the past 12 months may be dismayed by the recent 18% price decline. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth AU$361.4k, which is not great.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Astute Metals

Astute Metals Insider Transactions Over The Last Year

The Executive Chairman Anthony Leibowitz made the biggest insider purchase in the last 12 months. That single transaction was for AU$350k worth of shares at a price of AU$0.053 each. That means that even when the share price was higher than AU$0.033 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While Astute Metals 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

Astute Metals is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Astute Metals Insiders Bought Stock Recently

It's good to see that Astute Metals insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought AU$98k worth of shares. That shows some optimism about the company's future.

Insider Ownership Of Astute Metals

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Astute Metals insiders own about AU$4.6m worth of shares. That equates to 34% 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.

What Might The Insider Transactions At Astute Metals Tell Us?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Astute Metals shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Astute Metals. Case in point: We've spotted 6 warning signs for Astute Metals you should be aware of, and 5 of these are a bit unpleasant.

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.