Eldur Olafsson Bought 3.3% More Shares In Amaroq Minerals

Whilst it may not be a huge deal, we thought it was good to see that the Amaroq Minerals Ltd. (CVE:AMRQ) Founder, Eldur Olafsson, recently bought CA$98k worth of stock, for CA$1.05 per share. However, it only increased their shares held by 3.3%, and it wasn't a huge purchase by absolute value, either.

Check out our latest analysis for Amaroq Minerals

The Last 12 Months Of Insider Transactions At Amaroq Minerals

The Independent Non-Executive Director Sigurbjorn Thorkelsson made the biggest insider purchase in the last 12 months. That single transaction was for CA$3.4m worth of shares at a price of CA$1.25 each. That means that even when the share price was higher than CA$1.11 (the recent price), an insider wanted to purchase shares. 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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months insiders purchased 3.20m shares for CA$3.9m. But they sold 83.12k shares for CA$100k. In total, Amaroq Minerals insiders bought more than they sold over the last year. 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!

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

Does Amaroq Minerals Boast High 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. 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 Amaroq Minerals insiders own 8.4% of the company, worth about CA$32m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Amaroq Minerals Tell Us?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Amaroq Minerals we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Amaroq Minerals. For instance, we've identified 3 warning signs for Amaroq Minerals (1 is concerning) you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.