Astra Exploration Gains 17%, Insider Trades Reap Benefit

Astra Exploration Inc. (CVE:ASTR) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 17% resulting in a CA$953k addition to the company’s market value. As a result, their original purchase of CA$301.0k worth of stock is now worth CA$483.7k.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Astra Exploration

Astra Exploration Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Roberto Bittner Alarcon for CA$85k worth of shares, at about CA$0.085 per share. We do like to see buying, but this purchase was made at well below the current price of CA$0.14. 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.

While Astra Exploration insiders bought shares during the last year, they didn't sell. 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!

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

Insider Ownership Of Astra Exploration

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Astra Exploration insiders own 45% of the company, worth about CA$2.8m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Astra Exploration Insiders?

It doesn't really mean much that no insider has traded Astra Exploration shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Astra Exploration insiders think the business has merit. 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. Every company has risks, and we've spotted 3 warning signs for Astra Exploration (of which 2 are significant!) 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.