Yahoo Finance Bullish Bravura Solutions Limited (ASX:BVS) insiders filled their treasuries with AU$952k worth of stock over last year
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Bravura Solutions Limited (ASX:BVS), it sends a favourable 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 do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Bravura Solutions
The Last 12 Months Of Insider Transactions At Bravura Solutions
Over the last year, we can see that the biggest insider purchase was by insider Neil Broekhuizen for AU$398k worth of shares, at about AU$0.63 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.43). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. 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.
In the last twelve months Bravura Solutions insiders were buying shares, but not selling. The average buy price was around AU$0.71. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Bravura Solutions 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.
Bravura Solutions Insiders Bought Stock Recently
Over the last quarter, Bravura Solutions insiders have spent a meaningful amount on shares. In total, insiders bought AU$94k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests Bravura Solutions insiders own 1.1% of the company, worth about AU$2.1m. I generally like to see higher levels of ownership.
What Might The Insider Transactions At Bravura Solutions Tell Us?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Bravura Solutions insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Bravura Solutions. While conducting our analysis, we found that Bravura Solutions has 2 warning signs and it would be unwise to ignore them.
Of course Bravura Solutions 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. 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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