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Great news for Boom Logistics Limited (ASX:BOL): Insiders acquired stock in large numbers last year

Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Boom Logistics Limited (ASX:BOL), it sends a favourable message to the company's shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Boom Logistics

The Last 12 Months Of Insider Transactions At Boom Logistics

Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Director Damian Banks for AU$203k worth of shares, at about AU$0.15 per share. That means that an insider was happy to buy shares at above the current price of AU$0.14. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months Boom Logistics insiders were buying shares, but not selling. 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!

insider-trading-volume
insider-trading-volume

Boom Logistics 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.

Boom Logistics Insiders Bought Stock Recently

It's good to see that Boom Logistics insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought AU$210k worth of shares. This is a positive in our book as it implies some confidence.

Insider Ownership Of Boom Logistics

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests Boom Logistics insiders own 2.6% of the company, worth about AU$1.5m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. I generally like to see higher levels of ownership.

What Might The Insider Transactions At Boom Logistics Tell Us?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Boom Logistics stock. 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. In terms of investment risks, we've identified 2 warning signs with Boom Logistics and understanding them should be part of your investment process.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

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

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.

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