Yahoo Finance Bullish insiders bet CA$827k on Bonterra Resources Inc. (CVE:BTR)
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Bonterra Resources Inc.'s (CVE:BTR) instance, it's good news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Bonterra Resources
The Last 12 Months Of Insider Transactions At Bonterra Resources
Over the last year, we can see that the biggest insider purchase was by Executive Chairman of the Board Cesar Gonzalez for CA$159k worth of shares, at about CA$1.27 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.96). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Bonterra Resources 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders at Bonterra Resources Have Bought Stock Recently
Over the last quarter, Bonterra Resources insiders have spent a meaningful amount on shares. Overall, two insiders shelled out CA$116k for shares in the company -- and none sold. This makes one think the business has some good points.
Does Bonterra Resources Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Our information indicates that Bonterra Resources insiders own about CA$678k worth of shares. It's always possible we are missing something but from our data, it looks like insider ownership is minimal.
What Might The Insider Transactions At Bonterra Resources Tell Us?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Bonterra Resources stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Bonterra Resources. For instance, we've identified 5 warning signs for Bonterra Resources (2 make us uncomfortable) you should be aware of.
But note: Bonterra 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, 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.
