Whilst it may not be a huge deal, we thought it was good to see that Ziyad Binsalamah, who is a company insider, recently bought US$68k worth of stock, for US$2.12 per share. Even though that isn't a massive buy, it did increase their holding by 66%, which is a arguably a good sign.
The Last 12 Months Of Insider Transactions At Bridgeline Digital
Notably, that recent purchase by insider Ziyad Binsalamah was not the only time they bought Bridgeline Digital shares this year. They previously made an even bigger purchase of US$85k worth of shares at a price of US$3.39 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$1.85). 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 is very important. 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. Ziyad Binsalamah was the only individual insider to buy shares in the last twelve months.
Ziyad Binsalamah bought a total of 57297 shares over the year at an average price of US$2.68. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of Bridgeline Digital
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Our data suggests Bridgeline Digital insiders own 3.9% of the company, worth about US$201k. We consider this fairly low insider ownership.
What Might The Insider Transactions At Bridgeline Digital Tell Us?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Bridgeline Digital insiders are reasonably well aligned, and optimistic for the future. Along with insider transactions, I recommend checking if Bridgeline Digital is growing revenue. This free chart of historic revenue and earnings should make that easy.
Of course Bridgeline Digital may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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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If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.