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Even if it's not a huge purchase, we think it was good to see that Fadi Diab, the Non-Executive Director of Balkan Mining and Minerals Limited (ASX:BMM) recently shelled out AU$75k to buy stock, at AU$0.04 per share. Even though that isn't a massive buy, it did increase their holding by 446%, which is arguably a good sign.
View our latest analysis for Balkan Mining and Minerals
The Last 12 Months Of Insider Transactions At Balkan Mining and Minerals
In the last twelve months, the biggest single purchase by an insider was when Non-Executive Chairman Karl Simich bought AU$170k worth of shares at a price of AU$0.17 per share. That means that even when the share price was higher than AU$0.072 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Happily, we note that in the last year insiders paid AU$284k for 3.48m shares. But they sold 204.00k shares for AU$13k. In the last twelve months there was more buying than selling by Balkan Mining and Minerals insiders. They paid about AU$0.082 on average. These transactions suggest that insiders have considered the current price attractive. 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!
Balkan Mining and Minerals is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Does Balkan Mining and Minerals Boast High Insider Ownership?
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. Insiders own 28% of Balkan Mining and Minerals shares, worth about AU$1.4m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Balkan Mining and Minerals Tell Us?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Balkan Mining and Minerals insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Balkan Mining and Minerals. To help with this, we've discovered 5 warning signs (4 don't sit too well with us!) that you ought to be aware of before buying any shares in Balkan Mining and Minerals.