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Insider Buying: The Bluestone Resources Inc. (CVE:BSR) President Just Bought 5.0% More Shares

·3 min read

Whilst it may not be a huge deal, we thought it was good to see that the Bluestone Resources Inc. (CVE:BSR) President, Jack O. Lundin, recently bought CA$71k worth of stock, for CA$1.41 per share. Although the purchase is not a big one, increasing their shareholding by only 5.0%, it can be interpreted as a good sign.

See our latest analysis for Bluestone Resources

The Last 12 Months Of Insider Transactions At Bluestone Resources

In fact, the recent purchase by President Jack O. Lundin was not their only acquisition of Bluestone Resources shares this year. Earlier in the year, they paid CA$1.60 per share in a CA$317k purchase. That means that an insider was happy to buy shares at above the current price of CA$1.37. 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. We note that Jack O. Lundin was also the biggest seller.

Happily, we note that in the last year insiders paid CA$802k for 515.83k shares. But they sold 100.00k shares for CA$156k. Overall, Bluestone Resources insiders were net buyers during the last year. 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!


Bluestone Resources 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

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Bluestone Resources insiders have about 1.2% of the stock, worth approximately CA$2.6m. However, it's possible that insiders might have an indirect interest through a more complex structure. I generally like to see higher levels of ownership.

So What Do The Bluestone Resources Insider Transactions Indicate?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Bluestone Resources insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Bluestone Resources.

Of course Bluestone Resources 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.

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.

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