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Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Beacon Minerals Limited (ASX:BCN), that sends out a positive message to the company's 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.
View our latest analysis for Beacon Minerals
Beacon Minerals Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Non Executive Director Geoffrey Greenhill bought AU$656k worth of shares at a price of AU$0.034 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.028). 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. We note that Geoffrey Greenhill was both the biggest buyer and the biggest seller.
In the last twelve months insiders purchased 36.29m shares for AU$1.1m. But insiders sold 19.29m shares worth AU$656k. Overall, Beacon Minerals insiders were net buyers during the last year. 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!
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 Beacon Minerals
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 33% of Beacon Minerals shares, worth about AU$34m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Beacon Minerals Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Beacon Minerals and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Beacon Minerals. Every company has risks, and we've spotted 3 warning signs for Beacon Minerals you should know about.