Aroa Biosurgery Insiders May Regret Not Buying More, Market Cap Hits AU$183m

Aroa Biosurgery Limited (ASX:ARX) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 20%, resulting in a AU$31m rise in the company's market capitalisation, translating to a gain of 54% on their initial investment. As a result, the stock they originally bought for NZ$150.0k is now worth NZ$231.3k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Aroa Biosurgery Insider Transactions Over The Last Year

The Independent Non-Executive Director Catherine Mohr made the biggest insider purchase in the last 12 months. That single transaction was for AU$150k worth of shares at a price of AU$0.34 each. We do like to see buying, but this purchase was made at well below the current price of AU$0.53. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Aroa Biosurgery

Aroa Biosurgery is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Aroa Biosurgery insiders own 25% of the company, worth about AU$45m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Aroa Biosurgery Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Aroa Biosurgery and we see no evidence to suggest they are worried about the future. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Aroa Biosurgery.

Of course Aroa Biosurgery 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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.