Trade Alert: The Non-Executive Independent Director Of Boart Longyear Group Ltd. (ASX:BLY), Tye Burt, Has Just Spent US$78k Buying 230% More Shares

By
Simply Wall St
Published
March 23, 2022
ASX:BLY
Source: Shutterstock

Whilst it may not be a huge deal, we thought it was good to see that the Boart Longyear Group Ltd. (ASX:BLY) Non-Executive Independent Director, Tye Burt, recently bought AU$78k worth of stock, for AU$2.61 per share. While that isn't the hugest buy, it actually boosted their shareholding by 230%, which is good to see.

View our latest analysis for Boart Longyear Group

The Last 12 Months Of Insider Transactions At Boart Longyear Group

In fact, the recent purchase by Tye Burt was the biggest purchase of Boart Longyear Group shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of AU$2.59. It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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. Tye Burt was the only individual insider to buy shares in the last twelve months.

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!

insider-trading-volume
ASX:BLY Insider Trading Volume March 23rd 2022

Boart Longyear Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company 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. From what we can see in our data, insiders own only about AU$474k worth of Boart Longyear Group shares. This level of insider ownership is notably low, and not very encouraging.

So What Does This Data Suggest About Boart Longyear Group 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. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Boart Longyear Group stock. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. While conducting our analysis, we found that Boart Longyear Group has 2 warning signs and it would be unwise to ignore them.

But note: Boart Longyear Group 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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