Yahoo Finance Insider Buyers Lose AU$164k As Balkan Mining and Minerals Sheds AU$995k
Insiders who bought AU$252.1k worth of Balkan Mining and Minerals Limited's (ASX:BMM) stock at an average buy price of AU$0.16 over the last year may be disappointed by the recent 20% decrease in the stock. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only AU$87.8k.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Balkan Mining and Minerals
The Last 12 Months Of Insider Transactions At Balkan Mining and Minerals
The Non-Executive Chairman Karl Simich made the biggest insider purchase in the last 12 months. That single transaction was for AU$170k worth of shares at a price of AU$0.17 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.057). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Balkan Mining and Minerals insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Balkan Mining and Minerals Insiders Bought Stock Recently
We saw some Balkan Mining and Minerals insider buying shares in the last three months. MD & Director Ross Cotton bought AU$22k worth of shares in that time. It's great to see that insiders are only buying, not selling. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Balkan Mining and Minerals insiders own about AU$1.1m worth of shares. That equates to 26% 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 Balkan Mining and Minerals Insiders?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. The net investment is not enough to encourage us much. However, our analysis of transactions over the last year is heartening. Insiders own shares in Balkan Mining and Minerals and we see no evidence to suggest they are worried about 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. Be aware that Balkan Mining and Minerals is showing 5 warning signs in our investment analysis, and 4 of those are significant...
But note: Balkan Mining and Minerals 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 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.
