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Last week, Ballymore Resources Limited (ASX:BMR) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 24% last week, resulting in a AU$5.3m increase in the company's market worth, implying a 27% gain on their initial purchase. As a result, their original purchase of AU$514.2k worth of stock is now worth AU$654.2k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Ballymore Resources
Ballymore Resources Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Non-Executive Director Nicholas Jorss for AU$250k worth of shares, at about AU$0.12 per share. We do like to see buying, but this purchase was made at well below the current price of AU$0.15. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In the last twelve months Ballymore Resources insiders were buying shares, but not selling. 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 Ballymore Resources
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Ballymore Resources insiders own about AU$9.5m worth of shares. That equates to 35% 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 Do The Ballymore Resources Insider Transactions Indicate?
The fact that there have been no Ballymore Resources insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Insiders own shares in Ballymore Resources 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 Ballymore Resources. For instance, we've identified 5 warning signs for Ballymore Resources (3 are potentially serious) you should be aware of.