The recent price decline of 11% in Bowen Coking Coal Limited's (ASX:BCB) stock may have disappointed insiders who bought AU$2.05m worth of shares at an average price of AU$0.15 in the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth AU$897.4k which is not ideal.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Bowen Coking Coal

The Last 12 Months Of Insider Transactions At Bowen Coking Coal

Over the last year, we can see that the biggest insider purchase was by insider Matthew Latimore for AU$1m worth of shares, at about AU$0.17 per share. That means that even when the share price was higher than AU$0.066 (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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Bowen Coking Coal insiders may have bought shares in the last year, but they didn't sell any. They paid about AU$0.15 on average. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insiders At Bowen Coking Coal Have Bought Stock Recently

Over the last quarter, Bowen Coking Coal insiders have spent a meaningful amount on shares. In total, insiders bought AU$250k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.

Insider Ownership Of Bowen Coking Coal

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 7.2% of Bowen Coking Coal shares, worth about AU$13m, according to our data. But they may have an indirect interest through a corporate structure that we haven't picked up on. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!