Yahoo Finance With Battery Minerals Up 58%, Insider Buyers Count Their Returns
Battery Minerals Limited (ASX:BAT) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 58% resulting in a AU$3.5m addition to the company’s market value. In other words, the original AU$481.8k purchase is now worth AU$573.6k.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Battery Minerals
The Last 12 Months Of Insider Transactions At Battery Minerals
Notably, that recent purchase by Timothy Rupert Goyder is the biggest insider purchase of Battery Minerals shares that we've seen in the last year. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.06. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
In the last twelve months Battery Minerals insiders were buying shares, but not selling. The average buy price was around AU$0.05. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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 Battery Minerals Have Bought Stock Recently
It's good to see that Battery Minerals insiders have made notable investments in the company's shares. insider Timothy Rupert Goyder spent AU$304k on stock, and there wasn't any selling. That shows some optimism about the company's future.
Insider Ownership Of Battery Minerals
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 9.3% of Battery Minerals shares, worth about AU$751k, according to our data. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
What Might The Insider Transactions At Battery Minerals Tell Us?
It's certainly positive to see the recent insider purchase. 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 Battery Minerals stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Battery Minerals. Be aware that Battery Minerals is showing 4 warning signs in our investment analysis, and 3 of those make us uncomfortable...
Of course Battery Minerals 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
