Insider Returns Down To NZ$223k As Aroa Biosurgery's Stock Dips 10.0%

Insiders who purchased Aroa Biosurgery Limited (ASX:ARX) shares in the past 12 months are unlikely to be deeply impacted by the stock's 10.0% decline over the past week. After accounting for the recent loss, the NZ$325.6k worth of shares they purchased is now worth NZ$548.9k, suggesting a good return on their investment.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Aroa Biosurgery

Aroa Biosurgery Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Non-Executive Director Philip McCaw bought AU$176k worth of shares at a price of AU$0.54 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.72. 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.

While Aroa Biosurgery insiders bought shares during the last year, they didn't sell. They paid about AU$0.43 on average. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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 Aroa Biosurgery Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 25% of Aroa Biosurgery shares, worth about AU$62m. 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 Do The Aroa Biosurgery Insider Transactions Indicate?

The fact that there have been no Aroa Biosurgery insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Aroa Biosurgery and their transactions don't cause us concern. Of course, the future is what matters most. So if you are interested in Aroa Biosurgery, you should check out this free report on analyst forecasts for the company.

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.