Bio-Gene Technology Insiders Lose Out As Stock Sinks To AU$0.017

The recent price decline of 11% in Bio-Gene Technology Limited's (ASX:BGT) stock may have disappointed insiders who bought AU$270.0k worth of shares at an average price of AU$0.025 in the past 12 months. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth AU$183.6k, which is not great.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At Bio-Gene Technology

Over the last year, we can see that the biggest insider purchase was by insider Huat Choon for AU$250k worth of shares, at about AU$0.025 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). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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.

In the last twelve months Bio-Gene Technology insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Bio-Gene Technology

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Insiders At Bio-Gene Technology Have Bought Stock Recently

It's good to see that Bio-Gene Technology insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought AU$270k worth of shares. That shows some optimism about the company's future.

Insider Ownership Of Bio-Gene Technology

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Bio-Gene Technology insiders own about AU$2.1m worth of shares. That equates to 28% of the company. 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 Bio-Gene Technology Tell Us?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Bio-Gene Technology shares, given these transactions (along with notable insider ownership of the company). So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we've found that Bio-Gene Technology has 5 warning signs (4 can't be ignored!) that deserve your attention before going any further with your analysis.

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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.

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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.