Those following along with Benchmark Metals Inc. (CVE:BNCH) will no doubt be intrigued by the recent purchase of shares by insider Eric Sprott, who spent a stonking CA$678k on stock at an average price of CA$0.30. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 17%.
The Last 12 Months Of Insider Transactions At Benchmark Metals
In fact, the recent purchase by insider Eric Sprott was not their only acquisition of Benchmark Metals shares this year. They previously made an even bigger purchase of CA$4.0m worth of shares at a price of CA$0.30 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$0.41), 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.
Eric Sprott bought a total of 15.59m shares over the year at an average price of CA$0.30. 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!
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).
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Benchmark Metals insiders own about CA$7.4m worth of shares. That equates to 16% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Benchmark Metals Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Benchmark Metals insiders are well aligned, and that they may think the share price is too low. To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.
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.
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.
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. Thank you for reading.