Some Boss Resources Limited (ASX:BOE) shareholders may be a little concerned to see that insider Grant Burnaford Davey recently sold a whopping AU$3.0m worth of stock at a price of AU$0.063 per share. That's a big dump, and it decreased their holding size by 33%, which is notable but not too bad.
Boss Resources Insider Transactions Over The Last Year
Notably, that recent sale by Grant Burnaford Davey is the biggest insider sale of Boss Resources shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of AU$0.062. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Grant Burnaford Davey sold a total of 78700000 shares over the year at an average price of AU$0.039. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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Does Boss Resources Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 21% of Boss Resources shares, worth about AU$21m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Boss Resources Insider Transactions Indicate?
An insider sold stock recently, but they haven't been buying. And even if we look to the last year, we didn't see any purchases. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. Along with insider transactions, I recommend checking if Boss Resources is growing revenue. This free chart of historic revenue and earnings should make that easy.
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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, 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.