BOA Resources Up 59%, Insider Buyers Are Up 523%
Insiders who bought BOA Resources Limited (ASX:BOA) stock in the last 12 months were richly rewarded last week. The company's market value increased by AU$19m as a result of the stock's 59% gain over the same period. As a result, the stock they originally bought for AU$735.6k is now worth AU$4.58m.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
BOA Resources Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider Robert Van der Laan for AU$432k worth of shares, at about AU$0.025 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.17. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While BOA Resources insiders bought shares during the last year, they didn't sell. The average buy price was around AU$0.028. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. 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!
View our latest analysis for BOA Resources
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insider Ownership Of BOA Resources
Many investors like to check how much of a company is owned by 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. BOA Resources insiders own about AU$16m worth of shares. That equates to 31% 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 BOA Resources Insider Transactions Indicate?
The fact that there have been no BOA Resources insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think BOA Resources insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that BOA Resources is showing 5 warning signs in our investment analysis, and 3 of those are significant...
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 of direct interests only, but not derivative transactions or indirect interests.
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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.