Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Bellavista Resources Limited (ASX:BVR), it sends a favourable message to the company's 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.

View our latest analysis for Bellavista Resources

The Last 12 Months Of Insider Transactions At Bellavista Resources

Over the last year, we can see that the biggest insider purchase was by Non-Executive Director Michael Naylor for AU$99k worth of shares, at about AU$0.13 per share. Even though the purchase was made at a significantly lower price than the recent price (AU$0.21), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

In the last twelve months Bellavista Resources insiders were buying shares, but not selling. 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 always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Bellavista Resources

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Bellavista Resources insiders own 46% of the company, currently worth about AU$7.6m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Bellavista Resources Tell Us?

It doesn't really mean much that no insider has traded Bellavista Resources shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Bellavista Resources insiders feel good about the company's future. While we like knowing 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. Every company has risks, and we've spotted 6 warning signs for Bellavista Resources (of which 3 are potentially serious!) you should know about.