Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of AKORA Resources Limited (ASX:AKO), that sends out a positive message to the company's shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for AKORA Resources

AKORA Resources Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Geoffrey Crow, for AU$219k worth of shares, at about AU$0.13 per share. That means that even when the share price was below the current price of AU$0.15, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was 100% of Geoffrey Crow's holding. The only individual insider seller over the last year was Geoffrey Crow. Notably Geoffrey Crow was also the biggest buyer, having purchased AU$260k worth of shares.

Happily, we note that in the last year insiders paid AU$260k for 1.46m shares. But they sold 1.63m shares for AU$219k. In the last twelve months there was more buying than selling by AKORA Resources insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

AKORA 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.

Insiders At AKORA Resources Have Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at AKORA Resources. MD, CEO & Director Paul Bibby shelled out AU$69k for shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Insider Ownership Of AKORA Resources

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 24% of AKORA Resources shares, worth about AU$4.3m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The AKORA Resources Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. 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. Given that insiders also own a fair bit of AKORA Resources we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing AKORA Resources. Case in point: We've spotted 4 warning signs for AKORA Resources you should be aware of, and 2 of these are significant.

But note: AKORA 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 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.