Terrylene Penstock Is The CFO & Director of AsiaBaseMetals Inc. (CVE:ABZ) And Just Spent CA$350 On Shares

Simply Wall St
·3 min read

Whilst it may not be a huge deal, we thought it was good to see that the AsiaBaseMetals Inc. (CVE:ABZ) CFO & Director, Terrylene Penstock, recently bought CA$350 worth of stock, for CA$0.18 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

Check out our latest analysis for AsiaBaseMetals

The Last 12 Months Of Insider Transactions At AsiaBaseMetals

Earlier in the year, CFO & Director Terrylene Penstock paid CA$0.11 per share in a CA$216k purchase. We do like to see buying, but this purchase was made at well below the current price of CA$0.17. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months insiders purchased 1.99m shares for CA$222k. On the other hand they divested 19.00k shares, for CA$3.2k. Overall, AsiaBaseMetals insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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insider-trading-volume

AsiaBaseMetals 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.

Insider Ownership of AsiaBaseMetals

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that AsiaBaseMetals insiders own 56% of the company, worth about CA$4.6m. 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 AsiaBaseMetals Insider Transactions Indicate?

It is good to see recent purchasing. 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. When combined with notable insider ownership, these factors suggest AsiaBaseMetals insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! While we like knowing 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 AsiaBaseMetals is showing 5 warning signs in our investment analysis, and 4 of those are a bit concerning...

But note: AsiaBaseMetals 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.

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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.