Insiders Rewarded With AU$759k Addition To Investment As BIR Financial Stock Hits AU$17m

BIR Financial Limited (ASX:BIR) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 25% resulting in a AU$3.3m addition to the company’s market value. Put another way, the original AU$906.4k acquisition is now worth AU$1.67m.

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.

See our latest analysis for BIR Financial

The Last 12 Months Of Insider Transactions At BIR Financial

Over the last year, we can see that the biggest insider purchase was by insider Phacharanad Monthanyanan for AU$620k worth of shares, at about AU$0.026 per share. Even though the purchase was made at a significantly lower price than the recent price (AU$0.055), 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.

Over the last year, we can see that insiders have bought 30.29m shares worth AU$906k. But they sold 1.67m shares for AU$74k. Overall, BIR Financial insiders were net buyers during the last year. The average buy price was around AU$0.03. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

BIR Financial is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Are BIR Financial Insiders Buying Or Selling?

We saw insider selling worth AU$7.9k in the last three months. That's only a tiny bit more than the purchases, worth AU$3.3k. Looking at the net result, we don't think this recent trading sheds much light on how insiders, as a group, are feeling about the company's prospects.

Does BIR Financial Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. BIR Financial insiders own 71% of the company, currently worth about AU$12m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The BIR Financial Insider Transactions Indicate?

We note that there's been a little more insider selling than buying, recently. But the difference is small, and thus, not concerning. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like BIR Financial insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. 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. Every company has risks, and we've spotted 6 warning signs for BIR Financial (of which 3 are significant!) 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 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.