The CEO, MD & Director of Boss Resources Limited (ASX:BOE), Duncan Craib, Just Bought 67% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Boss Resources Limited (ASX:BOE) CEO, MD & Director, Duncan Craib, recently bought AU$100k worth of stock, for AU$0.025 per share. While that isn't the hugest buy, it actually boosted their shareholding by 67%, which is good to see.

See our latest analysis for Boss Resources

Boss Resources Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Non Executive Chairman Peter O’Connor bought AU$194k worth of shares at a price of AU$0.069 per share. That means that an insider was happy to buy shares at above the current price of AU$0.063. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

While Boss Resources insiders bought shares during the last year, they didn't sell. They paid about AU$0.044 on average. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share 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!

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).

Insider Ownership of Boss Resources

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 9.0% of Boss Resources shares, worth about AU$10m, according to our data. 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!

So What Do The Boss Resources Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. 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 Boss Resources 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. At Simply Wall St, we've found that Boss Resources has 5 warning signs (1 is potentially serious!) that deserve your attention before going any further with your analysis.

Of course Boss Resources may not be the best stock to buy. So you may wish to see this free collection of high quality 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. 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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