Yahoo Finance A Brightstar Resources Limited (ASX:BTR) insider increased their holdings last year
From what we can see, insiders were net buyers in Brightstar Resources Limited's (ASX:BTR ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.
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.
Check out our latest analysis for Brightstar Resources
Brightstar Resources Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when insider Michael Ruane bought AU$626k worth of shares at a price of AU$0.033 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.017). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Michael Ruane was the only individual insider to buy during the last year. Notably Michael Ruane was also the biggest seller.
Michael Ruane purchased 35.16m shares over the year. The average price per share was AU$0.029. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Brightstar Resources is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Brightstar Resources
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 35% of Brightstar Resources shares, worth about AU$4.3m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Brightstar Resources Insiders?
The fact that there have been no Brightstar Resources insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Brightstar Resources and we see no evidence to suggest they are worried about the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Brightstar Resources has 4 warning signs (and 3 which don't sit too well with us) we think you should know about.
But note: Brightstar Resources may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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