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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Blaze Minerals Limited's (ASX:BLZ) instance, it's good news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Blaze Minerals
Over the last year, we can see that the biggest insider purchase was by Independent Director Mathew Walker for AU$90k worth of shares, at about AU$0.03 per share. That means that even when the share price was higher than AU$0.027 (the recent price), an insider wanted to purchase shares. 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.
While Blaze Minerals insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Blaze Minerals is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Blaze Minerals Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Blaze Minerals insiders own about AU$2.9m worth of shares. That equates to 30% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Blaze Minerals Insiders?
It doesn't really mean much that no insider has traded Blaze Minerals shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Blaze Minerals and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Blaze Minerals. To that end, you should learn about the 3 warning signs we've spotted with Blaze Minerals (including 2 which are concerning).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.