Great news for Ark Mines Limited (ASX:AHK): Insiders acquired stock in large numbers last year




  • In Business
  • 2022-10-02 00:00:28Z
  • By Simply Wall St.
 

It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Ark Mines Limited's (ASX:AHK) case, it's fantastic news for shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Ark Mines

The Last 12 Months Of Insider Transactions At Ark Mines

The MD & Director Roger Jackson made the biggest insider purchase in the last 12 months. That single transaction was for AU$95k worth of shares at a price of AU$0.10 each. We do like to see buying, but this purchase was made at well below the current price of AU$0.26. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Ark Mines insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Ark Mines is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Ark Mines 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Ark Mines insiders own about AU$4.8m worth of shares (which is 41% 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 Do The Ark Mines Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Ark Mines insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ark Mines. To assist with this, we've discovered 4 warning signs that you should run your eye over to get a better picture of Ark Mines.

But note: Ark Mines 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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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