Aclara Resources Insiders Added US$28.3m Of Stock To Their Holdings
Over the last year, a good number of insiders have significantly increased their holdings in Aclara Resources Inc. (TSE:ARA). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Aclara Resources
Over the last year, we can see that the biggest insider purchase was by Chairman of the Board Eduardo Hochschild Beeck for CA$23m worth of shares, at about CA$2.83 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$3.32. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Happily, we note that in the last year insiders paid CA$28m for 9.96m shares. But insiders sold 273.30k shares worth CA$595k. In the last twelve months there was more buying than selling by Aclara Resources insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
View our latest analysis for Aclara Resources
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Aclara Resources Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Aclara Resources. Not only was there no selling that we can see, but they collectively bought CA$4.8m worth of shares. That shows some optimism about the company's future.
Does Aclara Resources Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Aclara Resources insiders own 41% of the company, currently worth about CA$352m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Aclara Resources Tell Us?
The recent insider purchases are heartening. 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. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Aclara Resources. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Aclara Resources. While conducting our analysis, we found that Aclara Resources has 2 warning signs and it would be unwise to ignore these.
But note: Aclara 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 of direct interests only, but not derivative transactions or indirect interests.
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