Independent Non-Executive Director of Amaroq Minerals Picks Up 15% More Stock

Those following along with Amaroq Minerals Ltd. (CVE:AMRQ) will no doubt be intrigued by the recent purchase of shares by Sigurbjorn Thorkelsson, Independent Non-Executive Director of the company, who spent a stonking CA$1.8m on stock at an average price of CA$1.53. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 15%.

Check out our latest analysis for Amaroq Minerals

Amaroq Minerals Insider Transactions Over The Last Year

In fact, the recent purchase by Independent Non-Executive Director Sigurbjorn Thorkelsson was not their only acquisition of Amaroq Minerals shares this year. Earlier in the year, they paid CA$1.25 per share in a CA$3.4m purchase. We do like to see buying, but this purchase was made at well below the current price of CA$1.74. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Over the last year, we can see that insiders have bought 5.13m shares worth CA$6.8m. On the other hand they divested 83.12k shares, for CA$100k. In total, Amaroq Minerals insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Amaroq Minerals 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.

Does Amaroq Minerals 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. Amaroq Minerals insiders own about CA$52m worth of shares. That equates to 8.1% of the company. 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 Amaroq Minerals Tell Us?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Amaroq Minerals insiders are well aligned, and that they may think the share price is too low. 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. For example, Amaroq Minerals has 2 warning signs (and 1 which makes us a bit uncomfortable) we think 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 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.