Yahoo Finance Independent Chairman of the Board Charles Stockton Needham Just Bought 3.6% More Shares In Alphamin Resources Corp. (CVE:AFM)
Whilst it may not be a huge deal, we thought it was good to see that the Alphamin Resources Corp. (CVE:AFM) Independent Chairman of the Board, Charles Stockton Needham, recently bought CA$51k worth of stock, for CA$0.64 per share. Although the purchase is not a big one, increasing their shareholding by only 3.6%, it can be interpreted as a good sign.
See our latest analysis for Alphamin Resources
The Last 12 Months Of Insider Transactions At Alphamin Resources
Over the last year, we can see that the biggest insider purchase was by Independent Director Pieter Pretorius for CA$1.6m worth of shares, at about CA$14.50 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.63). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Alphamin Resources insiders may have bought shares in the last year, but they didn't sell any. Their average price was about CA$0.83. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Alphamin Resources is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Alphamin Resources Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It appears that Alphamin Resources insiders own 7.6% of the company, worth about CA$58m. 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 Alphamin Resources Tell Us?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Alphamin Resources insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Alphamin Resources. While conducting our analysis, we found that Alphamin Resources has 2 warning signs and it would be unwise to ignore them.
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, 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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