Balkan Mining and Minerals Insiders Recover Some Losses, Which Stand At AU$99k

Insiders who purchased AU$198.8k worth of Balkan Mining and Minerals Limited (ASX:BMM) shares over the past year recouped some of their losses after price gained 40% 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$99k since the time of purchase.

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.

View our latest analysis for Balkan Mining and Minerals

Balkan Mining and Minerals Insider Transactions Over The Last Year

The Non-Executive Chairman Karl Simich made the biggest insider purchase in the last 12 months. That single transaction was for AU$170k worth of shares at a price of AU$0.17 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.074). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Happily, we note that in the last year insiders paid AU$199k for 1.35m shares. But they sold 204.00k shares for AU$13k. In the last twelve months there was more buying than selling by Balkan Mining and Minerals insiders. They paid about AU$0.15 on average. 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!

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.

Have Balkan Mining and Minerals Insiders Traded Recently?

Over the last three months, we've seen a bit of insider selling at Balkan Mining and Minerals. insider Bilal Ahmad only netted AU$13k selling shares, in that period. Neither the lack of buying nor the presence of selling is heartening. But the selling simply isn't sufficiently substantial to be of much use as a signal.

Insider Ownership Of Balkan Mining and Minerals

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. Insiders own 28% of Balkan Mining and Minerals shares, worth about AU$1.5m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Balkan Mining and Minerals Tell Us?

While there has not been any insider buying in the last three months, there has been selling. But the sales were small, so we're not concerned. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Balkan Mining and Minerals and we see no evidence to suggest they are worried about the future. While it's good to be aware of 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. For instance, we've identified 5 warning signs for Balkan Mining and Minerals (3 are concerning) you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

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