Potential Brightstar Resources Limited (ASX:BTR) shareholders may wish to note that insider Michael Ruane recently bought AU$401k worth of stock, paying AU$0.025 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 82%.
Brightstar Resources Insider Transactions Over The Last Year
In fact, the recent purchase by insider Michael Ruane was not their only acquisition of Brightstar Resources shares this year. Earlier in the year, they paid AU$0.033 per share in a AU$626k purchase. That means that an insider was happy to buy shares at above the current price of AU$0.017. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Michael Ruane was the only individual insider to buy shares in the last twelve months. We note that Michael Ruane was also the biggest seller.
Michael Ruane purchased 40.30m shares over the year. The average price per share was AU$0.03. 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 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).
Insider Ownership of Brightstar Resources
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. We usually like to see fairly high levels of insider ownership. Brightstar Resources insiders own about AU$4.6m worth of shares (which is 42% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Brightstar Resources Insiders?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Brightstar Resources. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Brightstar Resources. To help with this, we've discovered 4 warning signs (2 are a bit unpleasant!) that you ought to be aware of before buying any shares in Brightstar Resources.
But note: Brightstar Resources 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.
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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.