Black Cat Syndicate Limited (ASX:BC8) is up 13%, but insiders still continue to see a loss of AU$6.7k on their AU$1.7m investment

By
Simply Wall St
Published
April 08, 2022
ASX:BC8
Source: Shutterstock

Insiders who purchased AU$1.7m worth of Black Cat Syndicate Limited (ASX:BC8) shares over the past year recouped some of their losses after price gained 13% last week. However, the purchase is proving to be an expensive wager as insiders are yet to get ahead of their losses which currently stand at AU$6.7k since the time of purchase.

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.

See our latest analysis for Black Cat Syndicate

The Last 12 Months Of Insider Transactions At Black Cat Syndicate

The Independent Non-Executive Director Philip Crutchfield made the biggest insider purchase in the last 12 months. That single transaction was for AU$1m worth of shares at a price of AU$0.67 each. So it's clear an insider wanted to buy, at around the current price, which is AU$0.68. 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 do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.

Black Cat Syndicate insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
ASX:BC8 Insider Trading Volume April 8th 2022

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Black Cat Syndicate

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Black Cat Syndicate insiders own about AU$18m worth of shares. That equates to 19% 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.

What Might The Insider Transactions At Black Cat Syndicate Tell Us?

The fact that there have been no Black Cat Syndicate insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Black Cat Syndicate insiders are doubting the company, and they do own shares. 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. Be aware that Black Cat Syndicate is showing 5 warning signs in our investment analysis, and 3 of those are concerning...

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.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.