Yahoo Finance Positive Signs As Multiple Insiders Buy Aclara Resources Stock
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Aclara Resources Inc.'s (TSE:ARA) case, it's fantastic news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Aclara Resources
Aclara Resources Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by CEO & Director Ramon Costa for CA$420k worth of shares, at about CA$0.29 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.41. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While Aclara Resources insiders bought shares during the last year, they didn't sell. 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 plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership Of Aclara Resources
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests Aclara Resources insiders own 2.2% of the company, worth about CA$1.5m. However, it's possible that insiders might have an indirect interest through a more complex structure. We consider this fairly low insider ownership.
So What Does This Data Suggest About Aclara Resources Insiders?
The fact that there have been no Aclara Resources insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think Aclara Resources insiders are doubting the company. 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. Case in point: We've spotted 3 warning signs for Aclara Resources you should be aware of, and 2 of these shouldn't be ignored.
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.
