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Great news for BHP Group (ASX:BHP): Insiders acquired stock in large numbers last year

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·3 min read
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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in BHP Group's (ASX:BHP) instance, it's good news for shareholders.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for BHP Group

BHP Group Insider Transactions Over The Last Year

The Independent Non-Executive Director Xiaoqun Clever made the biggest insider purchase in the last 12 months. That single transaction was for AU$68k worth of shares at a price of AU$34.05 each. Even though the purchase was made at a significantly lower price than the recent price (AU$52.52), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Happily, we note that in the last year insiders paid AU$70k for 2.04k shares. But insiders sold 16.00 shares worth AU$820. Overall, BHP Group insiders were net buyers during the last year. 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!

insider-trading-volume
insider-trading-volume

BHP Group 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.

Have BHP Group Insiders Traded Recently?

There was only a small bit of insider buying, worth AU$2.1k, in the last three months. Overall, we don't think these recent trades are particularly informative, one way or the other.

Does BHP Group Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.03% of BHP Group shares, worth about AU$77m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About BHP Group Insiders?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think BHP Group insiders are doubting the company, and they do own shares. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we've found that BHP Group has 2 warning signs (1 doesn't sit too well with us!) that deserve your attention before going any further with your analysis.

Of course BHP Group 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.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.