Blaze Minerals' Market Cap Up AU$1.5m Following Year Of Insider Stock Buying \

Blaze Minerals Limited (ASX:BLZ) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 25%, resulting in a AU$1.5m rise in the company's market capitalisation. As a result, their original purchase of AU$323k worth of stock is now worth AU$467k.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Blaze Minerals

The Last 12 Months Of Insider Transactions At Blaze Minerals

In fact, the recent purchase by insider Jason Peterson was not their only acquisition of Blaze Minerals shares this year. Earlier in the year, they paid AU$0.019 per share in a AU$190k purchase. That means that an insider was happy to buy shares at around the current price of AU$0.02. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider bought shares at close to current prices. Jason Peterson was the only individual insider to buy shares in the last twelve months.

Jason Peterson bought a total of 23.33m shares over the year at an average price of AU$0.014. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Blaze Minerals 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.

Does Blaze Minerals Boast High Insider Ownership?

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. Insiders own 37% of Blaze Minerals shares, worth about AU$2.7m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Blaze Minerals Insiders?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Blaze Minerals insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 6 warning signs (5 shouldn't be ignored!) that you ought to be aware of before buying any shares in Blaze Minerals.

But note: Blaze Minerals may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.