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It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Ballymore Resources Limited's (ASX:BMR) case, it's fantastic news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Ballymore Resources
The Last 12 Months Of Insider Transactions At Ballymore Resources
The Non-Executive Director Nicholas Jorss made the biggest insider purchase in the last 12 months. That single transaction was for AU$250k worth of shares at a price of AU$0.12 each. Even though the purchase was made at a significantly lower price than the recent price (AU$0.14), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Ballymore Resources insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Ballymore Resources is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Ballymore Resources insiders own about AU$8.3m worth of shares. That equates to 35% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Ballymore Resources Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Ballymore Resources insiders are doubting the company, and they do own shares. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 5 warning signs for Ballymore Resources (3 shouldn't be ignored!) and we strongly recommend you look at them before investing.