Non-Executive Chairman of Astute Metals Picks Up 8.9% More Stock

Whilst it may not be a huge deal, we thought it was good to see that the Astute Metals NL (ASX:ASE) Non-Executive Chairman, Anthony Leibowitz, recently bought AU$150k worth of stock, for AU$0.024 per share. Although the purchase is not a big one, increasing their shareholding by only 8.9%, it can be interpreted as a good sign.

Our free stock report includes 5 warning signs investors should be aware of before investing in Astute Metals. Read for free now.

Astute Metals Insider Transactions Over The Last Year

Notably, that recent purchase by Non-Executive Chairman Anthony Leibowitz was not the only time they bought Astute Metals shares this year. Earlier in the year, they paid AU$0.03 per share in a AU$920k purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.021). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. 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 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 Astute Metals

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).

Does Astute Metals Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Astute Metals insiders own 41% of the company, currently worth about AU$5.2m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Astute Metals Insider Transactions Indicate?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Astute Metals. Nice! 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. At Simply Wall St, we found 5 warning signs for Astute Metals that deserve your attention before buying any shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.