AM Resources Corp.'s stock is down 15%, but insiders still have about CA$43k in profit after buying earlier this year

By
Simply Wall St
Published
January 22, 2022
TSXV:AMR
Source: Shutterstock

AM Resources Corp. (CVE:AMR) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 15% decline in the stock price. After accounting for the recent loss, the CA$115k worth of shares they purchased is now worth CA$158k, suggesting a good return on their investment.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for AM Resources

AM Resources Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by COO & Director Adriana Rios Garcia for CA$92k worth of shares, at about CA$0.04 per share. We do like to see buying, but this purchase was made at well below the current price of CA$0.055. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months AM Resources insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
TSXV:AMR Insider Trading Volume January 22nd 2022

AM Resources is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does AM Resources Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. AM Resources insiders own 46% of the company, currently worth about CA$2.8m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At AM Resources Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like AM Resources insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. While we like knowing 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. Every company has risks, and we've spotted 5 warning signs for AM Resources (of which 3 don't sit too well with us!) you should know about.

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, but not derivative transactions.

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