BIR Financial Limited (ASX:BIR) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 17% decline in the stock price. Reason being, despite the recent loss, insiders original purchase value of AU$75k is now worth AU$75k.
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 BIR Financial
The Last 12 Months Of Insider Transactions At BIR Financial
The Director Tomasz Murmylo made the biggest insider purchase in the last 12 months. That single transaction was for AU$75k worth of shares at a price of AU$0.025 each. So it's clear an insider wanted to buy, at around the current price, which is AU$0.025. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for BIR Financial share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was Tomasz Murmylo.
The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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 BIR Financial
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that BIR Financial insiders own 73% of the company, worth about AU$2.3m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About BIR Financial Insiders?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest BIR Financial insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! 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. Be aware that BIR Financial is showing 7 warning signs in our investment analysis, and 5 of those make us uncomfortable...