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 shareholders might well want to know whether insiders have been buying or selling shares in Braveheart Resources Inc. (CVE:BHT).
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'
The Last 12 Months Of Insider Transactions At Braveheart Resources
Over the last year, we can see that the biggest insider purchase was by President & 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 above the current price of CA$0.095. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months insiders purchased 5.5m shares for CA$537k. But insiders sold 120k shares worth CA$12k. In total, Braveheart Resources insiders bought more than they sold over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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.
Braveheart Resources Insiders Bought Stock Recently
We saw some Braveheart Resources insider buying shares in the last three months. In that period insiders spent CA$74k on shares. On the other hand, they sold CA$12k worth of shares. While it's good to see the insider buying, the net amount bought isn't enough for us to gain much confidence from it.
Does Braveheart Resources Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Braveheart Resources insiders own about CA$1.4m worth of shares. That equates to 19% 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 Braveheart Resources Tell Us?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Braveheart Resources we think they are probably pretty confident of a bright future. Along with insider transactions, I recommend checking if Braveheart Resources is growing revenue. This free chart of historic revenue and earnings should make that easy.
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.
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