Despite Aurum Resources' Pullback, Insiders Still Gained AU$127k

Insiders who bought Aurum Resources Limited (ASX:AUE) in the last 12 months may probably not pay attention to the stock's recent 16% drop. Reason being, despite the recent loss, insiders original purchase value of AU$338.0k is now worth AU$464.7k.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Aurum Resources

The MD & Non-Independent Non-Executive Director Caigen Wang made the biggest insider purchase in the last 12 months. That single transaction was for AU$240k worth of shares at a price of AU$0.24 each. Even though the purchase was made at a significantly lower price than the recent price (AU$0.33), 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.

Aurum Resources insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Aurum Resources

Aurum Resources 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

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 21% of Aurum Resources shares, worth about AU$15m. 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 Does This Data Suggest About Aurum Resources Insiders?

It doesn't really mean much that no insider has traded Aurum Resources shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Aurum Resources and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Aurum Resources. Every company has risks, and we've spotted 5 warning signs for Aurum Resources (of which 4 are concerning!) you should know about.

But note: Aurum Resources 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.