Insiders who bought Aurania Resources Ltd. (CVE:ARU) in the last 12 months may probably not pay attention to the stock's recent 11% drop. After accounting for the recent loss, the CA$497.2k worth of shares they purchased is now worth CA$1.00m, suggesting a good return on their investment.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Aurania Resources

Aurania Resources Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Executive Chairman Keith Barron for CA$461k worth of shares, at about CA$0.20 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$0.41), we still think insider buying is a positive. 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.

In the last twelve months Aurania Resources insiders were buying shares, but not selling. 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!

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.

Aurania Resources Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Aurania Resources. Not only was there no selling that we can see, but they collectively bought CA$481k worth of shares. That shows some optimism about the company's future.

Insider Ownership Of Aurania Resources

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Aurania Resources insiders own 44% of the company, worth about CA$18m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Aurania Resources Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Aurania Resources. Looks promising! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For instance, we've identified 5 warning signs for Aurania Resources (2 don't sit too well with us) you should be aware of.