Those following along with Blackstone Minerals Limited (ASX:BSX) will no doubt be intrigued by the recent purchase of shares by insider Samuel Coatham, who spent a stonking AU$877k on stock at an average price of AU$0.30. That increased their holding by a full 62%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.
The Last 12 Months Of Insider Transactions At Blackstone Minerals
Notably, that recent purchase by Samuel Coatham is the biggest insider purchase of Blackstone Minerals shares that we’ve seen in the last year. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.20). It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Samuel Coatham was the only individual insider to buy shares in the last twelve months.
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!
Blackstone Minerals 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.
Does Blackstone Minerals Boast High Insider Ownership?
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. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Blackstone Minerals insiders own 8.5% of the company, worth about AU$7.8m. But they may have an indirect interest through a corporate structure that we haven’t picked up on. Whilst better than nothing, we’re not overly impressed by these holdings.
What Might The Insider Transactions At Blackstone Minerals Tell Us?
The recent insider purchase is 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. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Blackstone Minerals insiders are expecting a bright future. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Blackstone Minerals. To help with this, we’ve discovered 4 warning signs (1 can’t be ignored!) that you ought to be aware of before buying any shares in Blackstone Minerals.
But note: Blackstone 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, 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.