Insiders Of Bellavista Resources Are Up 48% On Their AU$1.69m Purchase

Bellavista Resources Limited (ASX:BVR) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 10.0% resulting in a AU$7.3m addition to the company’s market value. As a result, their original purchase of AU$1.69m worth of stock is now worth AU$2.50m.

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.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Bellavista Resources Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Mark Clark for AU$627k worth of shares, at about AU$0.22 per share. We do like to see buying, but this purchase was made at well below the current price of AU$0.39. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Over the last year, we can see that insiders have bought 6.51m shares worth AU$1.7m. On the other hand they divested 1.33m shares, for AU$674k. In the last twelve months there was more buying than selling by Bellavista Resources insiders. The average buy price was around AU$0.26. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. 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!

View our latest analysis for Bellavista Resources

Bellavista Resources is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders At Bellavista Resources Have Sold Stock Recently

The last three months saw significant insider selling at Bellavista Resources. Specifically, Independent Non-Executive Chairman Norman Mel Ashton ditched AU$114k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Does Bellavista Resources Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It appears that Bellavista Resources insiders own 22% of the company, worth about AU$18m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Bellavista Resources Insider Transactions Indicate?

An insider hasn't bought Bellavista Resources stock in the last three months, but there was some selling. But we take heart from prior transactions. It's good to see insiders are shareholders. So we're not overly bothered by recent selling. While it's good to be aware of 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. For instance, we've identified 5 warning signs for Bellavista Resources (3 can't be ignored) you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.