Stock Analysis

Insiders purchases in Auric Mining Limited (ASX:AWJ) last year yet to pay off, remain down AU$27k despite recent gains

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Some of the losses seen by insiders who purchased AU$88k worth of Auric Mining Limited (ASX:AWJ) shares over the past year were recovered after the stock increased by 12% over the past week. The purchase, however, has proven to be a pricey bet, with losses currently totalling AU$27k.

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.

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The Last 12 Months Of Insider Transactions At Auric Mining

While no particular insider transaction stood out, we can still look at the overall trading.

In the last twelve months insiders purchased 1.21m shares for AU$88k. On the other hand they divested 671.78k shares, for AU$43k. Overall, Auric Mining insiders were net buyers during the last year. 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!

ASX:AWJ Insider Trading Volume April 1st 2023

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insiders At Auric Mining Have Sold Stock Recently

Over the last three months, we've seen a bit of insider selling at Auric Mining. The selling netted AU$43k for insider Tom Fairchild. But at least we saw AU$6.0k worth of buying. While it's not great to see insider selling, the net amount sold isn't enough for us to want to read anything into it.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 30% of Auric Mining shares, worth about AU$2.0m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Auric Mining Insiders?

Insider selling has just outweighed insider buying in the last three months. But the difference is small, and thus, not concerning. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Auric Mining and we see no evidence to suggest they are worried about the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For instance, we've identified 5 warning signs for Auric Mining (3 are a bit unpleasant) you should be aware of.

Of course Auric Mining may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.

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