Insider Spends AU$268k Buying More Shares In Bowen Coking Coal

Potential Bowen Coking Coal Limited (ASX:BCB) shareholders may wish to note that the Executive Chairman, Nicholas Jorss, recently bought AU$268k worth of stock, paying AU$0.067 for each share. Although the purchase only increased their holding by 7.1%, it is still a solid purchase in our view.

View our latest analysis for Bowen Coking Coal

The Last 12 Months Of Insider Transactions At Bowen Coking Coal

In the last twelve months, the biggest single purchase by an insider was when insider Matthew Latimore bought AU$1m worth of shares at a price of AU$0.17 per share. That means that even when the share price was higher than AU$0.065 (the recent price), an insider wanted to purchase shares. 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Bowen Coking Coal insiders may have bought shares in the last year, but they didn't sell any. Their average price was about AU$0.13. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Bowen Coking Coal 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 Bowen Coking Coal Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Bowen Coking Coal insiders own about AU$13m worth of shares (which is 7.2% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Does This Data Suggest About Bowen Coking Coal Insiders?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Bowen Coking Coal shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Bowen Coking Coal. To that end, you should learn about the 2 warning signs we've spotted with Bowen Coking Coal (including 1 which shouldn't be ignored).

But note: Bowen Coking Coal 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 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.