Insiders of Blackline Safety Corp. (TSE:BLN) received good value on their investment after their CA$1.3m purchase jumped CA$263k in value
Last week, Blackline Safety Corp. (TSE:BLN) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 12% last week, resulting in a CA$21m increase in the company's market worth. In other words, the original CA$1.3m purchase is now worth CA$1.6m.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Blackline Safety
The Last 12 Months Of Insider Transactions At Blackline Safety
In the last twelve months, the biggest single purchase by an insider was when Chairman of the Board & CEO Cody Slater bought CA$500k worth of shares at a price of CA$2.20 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$2.70), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Happily, we note that in the last year insiders paid CA$1.3m for 577.85k shares. But they sold 38.96k shares for CA$168k. In total, Blackline Safety insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Blackline Safety is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Blackline Safety Insiders Are Selling The Stock
Over the last three months, we've seen a bit of insider selling at Blackline Safety. Independent Director John Finbow only netted CA$35k selling shares, in that period. Neither the lack of buying nor the presence of selling is heartening. But the amount sold isn't enough for us to put any weight on it.
Insider Ownership
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. Our data indicates that Blackline Safety insiders own about CA$11m worth of shares (which is 5.7% of the company). We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
What Might The Insider Transactions At Blackline Safety Tell Us?
While there has not been any insider buying in the last three months, there has been selling. But given the selling was modest, we're not worried. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Blackline Safety and their transactions don't cause us concern. 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. When we did our research, we found 3 warning signs for Blackline Safety (1 shouldn't be ignored!) that we believe deserve your full attention.
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.
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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.
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