Did Ascendant Resources Inc. (TSE:ASND) Insiders Buy Up More Shares?

It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Ascendant Resources Inc. (TSE:ASND), you may well want to know whether insiders have been buying or selling.

What Is Insider Buying?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, such insiders must disclose their trading activities, and not trade on inside information.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

View our latest analysis for Ascendant Resources

Ascendant Resources Insider Transactions Over The Last Year

In fact, the recent sale by Independent Lead Director Stephen Shefsky was not their only trade of Ascendant Resources shares this year. Earlier in the year, they spent CA$77k to buy shares at CA$0.21 per share. So it's clear an insider wanted to buy, at around the current price, which is CA$0.22. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Ascendant Resources insider decided to buy shares at close to current prices. Stephen Shefsky was the only individual insider to buy shares in the last twelve months. Notably Stephen Shefsky was also the biggest seller.

Stephen Shefsky bought 464.11k shares over the last 12 months at an average price of CA$0.21. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Ascendant Resources Insiders Bought Stock Recently

There was some insider buying at Ascendant Resources over the last quarter. Independent Lead Director Stephen Shefsky bought CA$99k worth in that time. However, Independent Lead Director Stephen Shefsky netted CA$77k for sales. It is nice to see that insiders have bought, but the quantum isn't large enough to get us excited.

Does Ascendant Resources Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that Ascendant Resources insiders own 23% of the company, worth about CA$4.8m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Ascendant Resources Insiders?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Ascendant Resources and their transactions don't cause us concern. 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 Ascendant Resources you should know about.

But note: Ascendant 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, but not derivative transactions.

This article by Simply Wall St is general in nature. 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.

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