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It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Bisalloy Steel Group Limited's (ASX:BIS) case, it's fantastic news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Bisalloy Steel Group Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Director Michael Gundy bought AU$96k worth of shares at a price of AU$1.55 per share. That implies that an insider found the current price of AU$1.67 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Bisalloy Steel Group insiders decided to buy shares at close to current prices.
In the last twelve months insiders purchased 64.50k shares for AU$101k. But insiders sold 5.81k shares worth AU$9.2k. Overall, Bisalloy Steel Group insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Have Bisalloy Steel Group Insiders Traded Recently?
There was only a small bit of insider buying, worth AU$4.9k, in the last three months. Overall, we don't think these recent trades are particularly informative, one way or the other.
Insider Ownership of Bisalloy Steel Group
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. We usually like to see fairly high levels of insider ownership. Insiders own 24% of Bisalloy Steel Group shares, worth about AU$19m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Bisalloy Steel Group Insider Transactions Indicate?
We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. However, our analysis of transactions over the last year is heartening. Insiders own shares in Bisalloy Steel Group and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Bisalloy Steel Group. At Simply Wall St, we found 3 warning signs for Bisalloy Steel Group that deserve your attention before buying any shares.
But note: Bisalloy Steel Group 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.