Keith Barron Bought 4.2% More Shares In Aurania Resources

Investors who take an interest in Aurania Resources Ltd. (CVE:ARU) should definitely note that the Executive Chairman, Keith Barron, recently paid CA$0.30 per share to buy CA$600k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 4.2%.

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The Last 12 Months Of Insider Transactions At Aurania Resources

Notably, that recent purchase by Keith Barron is the biggest insider purchase of Aurania Resources shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.26). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While Aurania Resources insiders bought shares during the last year, they didn't sell. They paid about CA$0.34 on average. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Aurania Resources

Aurania Resources is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Aurania Resources Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Aurania Resources insiders own 47% of the company, currently worth about CA$13m 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.

So What Do The Aurania Resources Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Aurania Resources. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Aurania Resources. Case in point: We've spotted 6 warning signs for Aurania Resources you should be aware of, and 2 of them can't be ignored.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.