Several Insiders Invested In Bonterra Resources Flagging Positive News \
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Bonterra Resources Inc.'s (CVE:BTR) instance, it's good news for 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.
View our latest analysis for Bonterra Resources
Bonterra Resources Insider Transactions Over The Last Year
The President Marc-Andre Pelletier made the biggest insider purchase in the last 12 months. That single transaction was for CA$69k worth of shares at a price of CA$0.70 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.33). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Bonterra Resources insiders bought shares during the last year, they didn't sell. The average buy price was around CA$0.54. I'd consider this a positive as it suggests insiders see value at around the current price. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Are Bonterra Resources Insiders Buying Or Selling?
President Marc-Andre Pelletier bought just CA$6.5k worth of shares in that time. That's not much at all. So it is hard to draw any conclusion about how insiders are feeling about the stock, from these recent trades.
Insider Ownership Of Bonterra Resources
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. Our information indicates that Bonterra Resources insiders own about CA$403k worth of shares. It's always possible we are missing something but from our data, it looks like insider ownership is minimal.
So What Do The Bonterra Resources Insider Transactions Indicate?
We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it'd be more encouraging if Bonterra Resources insiders bought more shares in the company. 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. Case in point: We've spotted 3 warning signs for Bonterra Resources you should be aware of, and 2 of these shouldn't be ignored.
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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