We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Braveheart Resources Inc. (CVE:BHT), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
The Last 12 Months Of Insider Transactions At Braveheart Resources
Over the last year, we can see that the biggest insider purchase was by Director Philip Keele for CA$100k worth of shares, at about CA$0.10 per share. That means that an insider was happy to buy shares at around the current price of CA$0.11. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Braveheart Resources share holders is that insiders were buying at near the current price.
Over the last year, we can see that insiders have bought 4077000 shares worth CA$424k. On the other hand they divested 526000 shares, for CA$77k. In the last twelve months there was more buying than selling by Braveheart Resources insiders. 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!
Braveheart Resources is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Are Braveheart Resources Insiders Buying Or Selling?
We saw insider selling worth CA$47k in the last three months. That's only a tiny bit more than the purchases, worth CA$41k. Ultimately the overall selling isn't enough to tell us much.
Does Braveheart Resources 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. We usually like to see fairly high levels of insider ownership. Insiders own 15% of Braveheart Resources shares, worth about CA$1.7m. 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 Braveheart Resources Insider Transactions Indicate?
Our data shows a little more insider selling than buying in the last three months. But the difference isn't enough to have us worried. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Braveheart Resources insiders are doubting the company, and they do own shares. Of course, the future is what matters most. So if you are interested in Braveheart Resources, you should check out this free report on analyst forecasts for the company.
Of course Braveheart Resources 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.