Whilst it may not be a huge deal, we thought it was good to see that the Black Cat Syndicate Limited (ASX:BC8) Non-Executive Chairman, Paul Chapman, recently bought AU$95k worth of stock, for AU$0.32 per share. However, we do note that it only increased their holding by 4.6%, and it wasn't a huge purchase by absolute value, either.
Black Cat Syndicate Insider Transactions Over The Last Year
Notably, that recent purchase by Non-Executive Chairman Paul Chapman was not the only time they bought Black Cat Syndicate shares this year. They previously made an even bigger purchase of AU$110k worth of shares at a price of AU$0.20 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.37. 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.
Black Cat Syndicate insiders may have bought shares in the last year, but they didn't sell any. Their average price was about AU$0.26. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. 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.
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Black Cat Syndicate insiders own about AU$8.4m worth of shares. That equates to 27% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Black Cat Syndicate Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Black Cat Syndicate insiders are well aligned, and that they may think the share price is too low. Along with insider transactions, I recommend checking if Black Cat Syndicate is growing revenue. This free chart of historic revenue and earnings should make that easy.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
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