Trade Alert: The Chairman of the Board & CEO Of Blackline Safety Corp. (TSE:BLN), Cody Slater, Has Just Spent CA$500k Buying 15% More Shares
Potential Blackline Safety Corp. (TSE:BLN) shareholders may wish to note that the Chairman of the Board & CEO, Cody Slater, recently bought CA$500k worth of stock, paying CA$2.20 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 15%.
See our latest analysis for Blackline Safety
The Last 12 Months Of Insider Transactions At Blackline Safety
Notably, that recent purchase by Cody Slater is the biggest insider purchase of Blackline Safety shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$1.82). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Happily, we note that in the last year insiders paid CA$1.4m for 528.85k shares. But they sold 49.06k shares for CA$298k. In the last twelve months there was more buying than selling by Blackline Safety insiders. Their average price was about CA$2.65. 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!
Blackline Safety is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
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. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Blackline Safety insiders own 5.0% of the company, worth about CA$6.6m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
What Might The Insider Transactions At Blackline Safety 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 during the last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Blackline Safety insiders are reasonably well aligned, and optimistic for the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example, Blackline Safety has 3 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.
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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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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