Insider Buyers Lose AU$213k As Black Rock Mining Sheds AU$4.4m

The recent 11% drop in Black Rock Mining Limited's (ASX:BKT) stock could come as a blow to insiders who purchased AU$643.4k worth of stock at an average buy price of AU$0.036 over the past 12 months. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only AU$430.7k.

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.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Black Rock Mining Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Stephen Copulos for AU$443k worth of shares, at about AU$0.051 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.024). 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 an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Stephen Copulos was the only individual insider to buy shares in the last twelve months.

Stephen Copulos purchased 17.95m shares over the year. The average price per share was AU$0.036. 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!

See our latest analysis for Black Rock Mining

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

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Black Rock Mining insiders own 8.3% of the company, worth about AU$2.9m. 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 Black Rock Mining Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think Black Rock Mining insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Black Rock Mining. To that end, you should learn about the 5 warning signs we've spotted with Black Rock Mining (including 2 which can't be ignored).

Of course Black Rock Mining 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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.