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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 Bathurst Metals Corp. (CVE:BMV), that sends out a positive message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
Bathurst Metals Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by CEO, President Harold Forzley for CA$257k worth of shares, at about CA$0.10 per share. That means that an insider was happy to buy shares at around the current price of CA$0.11. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Bathurst Metals share holders is that insiders were buying at near the current price.
Over the last year, we can see that insiders have bought 5.70m shares worth CA$558k. But they sold 300.00k shares for CA$38k. In total, Bathurst Metals insiders bought more than they sold over 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insiders at Bathurst Metals Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Bathurst Metals. Not only was there no selling that we can see, but they collectively bought CA$88k worth of shares. This could be interpreted as suggesting a positive outlook.
Does Bathurst Metals Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Bathurst Metals insiders own about CA$1.1m worth of shares. That equates to 29% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Bathurst Metals Insiders?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Bathurst Metals insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Bathurst Metals. Case in point: We've spotted 2 warning signs for Bathurst Metals you should be aware of, and 1 of them is potentially serious.
But note: Bathurst Metals 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.
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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