Yahoo Finance Who Has Been Buying Bearing Lithium Corp. (CVE:BRZ) Shares?
It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Bearing Lithium Corp. (CVE:BRZ), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.
Check out our latest analysis for Bearing Lithium
The Last 12 Months Of Insider Transactions At Bearing Lithium
Interim CEO & Chairman of the Board Gilbert Playford made the biggest insider purchase in the last 12 months. That single transaction was for CA$120k worth of shares at a price of CA$0.12 each. That implies that an insider found the current price of CA$0.12 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Bearing Lithium share holders is that insiders were buying at near the current price.
In the last twelve months Bearing Lithium insiders were buying shares, but not selling. The average buy price was around CA$0.15. I'd consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Bearing Lithium is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Bearing Lithium insiders own about CA$1.0m worth of shares (which is 12% of the company). We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Bearing Lithium Tell Us?
It doesn't really mean much that no insider has traded Bearing Lithium shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if Bearing Lithium insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Bearing Lithium. Our analysis shows 4 warning signs for Bearing Lithium (2 don't sit too well with us!) and we strongly recommend you look at them before investing.
Of course Bearing Lithium may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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. 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. Thank you for reading.
