Potential Albion Resources Limited (ASX:ALB) shareholders may wish to note that the Independent Non-Executive Chairman, Steven Formica, recently bought AU$251k worth of stock, paying AU$0.07 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 237%.
The Last 12 Months Of Insider Transactions At Albion Resources
In fact, the recent purchase by Steven Formica was the biggest purchase of Albion Resources shares made by an insider individual in the last twelve months, according to our records. We do like to see buying, but this purchase was made at well below the current price of AU$0.085. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Albion Resources insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Albion Resources 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 Albion Resources
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Albion Resources insiders own about AU$2.1m worth of shares (which is 53% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Albion Resources Insiders?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Albion Resources. That's what I like to see! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example, Albion Resources has 4 warning signs (and 3 which can't be ignored) we think you should know about.
But note: Albion 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.
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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.
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