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華爾街日報Bayan Mining and Minerals Insiders May Regret Not Buying More, Market Cap Hits AU$16m
Insiders who bought Bayan Mining and Minerals Limited (ASX:BMM) stock in the last 12 months were richly rewarded last week. The company's market value increased by AU$2.7m as a result of the stock's 21% gain over the same period. Put another way, the original AU$181.4k acquisition is now worth AU$416.3k.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Bayan Mining and Minerals Insider Transactions Over The Last Year
The Executive Director Fadi Diab made the biggest insider purchase in the last 12 months. That single transaction was for AU$100k worth of shares at a price of AU$0.047 each. Even though the purchase was made at a significantly lower price than the recent price (AU$0.12), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While Bayan Mining and Minerals insiders bought shares during the last year, they didn't sell. 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!
See our latest analysis for Bayan Mining and Minerals
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Bayan Mining and Minerals insiders own 42% of the company, currently worth about AU$6.5m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Bayan Mining and Minerals Tell Us?
The fact that there have been no Bayan Mining and Minerals insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Bayan Mining and Minerals insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Bayan Mining and Minerals. Be aware that Bayan Mining and Minerals is showing 5 warning signs in our investment analysis, and 4 of those can't be ignored...
But note: Bayan Mining and Minerals 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 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.