Insiders Relieved After Selling Awalé Resources With 16% Price Dip

Over the past year, insiders sold US$122k worth of Awalé Resources Limited (CVE:ARIC) stock at an average price of US$0.70 per share allowing them to get the most out of their money. The company’s market cap plunged by CA$23m after price dropped by 16% last week but insiders were able to limit their loss to an extent.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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Awalé Resources Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Vice President of Corporate Development Ardem Keshishian bought CA$75k worth of shares at a price of CA$0.75 per share. That means that an insider was happy to buy shares at around the current price of CA$0.82. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Awalé Resources share holders is that an insider was buying at near the current price. Ardem Keshishian was the only individual insider to buy during the last year.

In total, Awalé Resources insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Awalé Resources

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Awalé Resources Insiders Are Selling The Stock

We have seen a bit of insider selling at Awalé Resources, over the last three months. Vice President of Exploration Andrew Smith only netted CA$62k selling shares, in that period. It's not great to see insider selling, nor the lack of recent buyers. But the volume sold is so low that it really doesn't bother us.

Does Awalé Resources Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, Awalé Resources insiders have about 4.0% of the stock, worth approximately CA$5.2m. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Awalé Resources Tell Us?

An insider sold Awalé Resources shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. When you combine this with the relatively low insider ownership, we are very cautious about the stock. So we're not rushing to buy, to say the least. While it's good to be aware of 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. Be aware that Awalé Resources is showing 4 warning signs in our investment analysis, and 3 of those are significant...

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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.