This Aclara Resources Insider Increased Their Holding By 83% Last Year

From what we can see, insiders were net buyers in Aclara Resources Inc.'s (TSE:ARA ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.

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.

View our latest analysis for Aclara Resources

Aclara Resources Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Chief Operating Officer Barry Murphy bought CA$76k worth of shares at a price of CA$0.48 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.46). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Barry Murphy was the only individual insider to buy shares in the last twelve months.

Barry Murphy purchased 206.50k shares over the year. The average price per share was CA$0.48. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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.

Insider Ownership Of Aclara Resources

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 40% of Aclara Resources shares, worth about CA$31m. 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 Aclara Resources Tell Us?

It doesn't really mean much that no insider has traded Aclara Resources shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in Aclara Resources 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. Be aware that Aclara Resources is showing 3 warning signs in our investment analysis, and 2 of those are significant...

But note: Aclara 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.