Insiders Sold BPM Minerals At AU$0.12, Meanwhile Stock Sits Near AU$0.075

BPM Minerals Limited's (ASX:BPM) value has fallen 35% in the last week, but insiders who sold AU$631k worth of stock over the last year have had less success. Given that the average selling price of AU$0.12 is still lower than the current share price, insiders would probably have been better off keeping their shares.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for BPM Minerals

The Last 12 Months Of Insider Transactions At BPM Minerals

The insider, Steven Pearce, made the biggest insider sale in the last 12 months. That single transaction was for AU$344k worth of shares at a price of AU$0.13 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of AU$0.075. So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was Steven Pearce. Notably Steven Pearce was also the biggest buyer, having purchased AU$84k worth of shares.

Steven Pearce sold a total of 5.40m shares over the year at an average price of AU$0.12. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insiders At BPM Minerals Have Sold Stock Recently

Over the last three months, we've seen notably more insider selling, than insider buying, at BPM Minerals. We note insider Steven Pearce cashed in AU$631k worth of shares. Meanwhile insider Steven Pearce bought AU$84k worth , as we said above . Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the shares are not cheap.

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 11% of BPM Minerals shares, worth about AU$669k, according to our data. 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!

What Might The Insider Transactions At BPM Minerals Tell Us?

Unfortunately, there has been more insider selling of BPM Minerals stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. When you combine this with the relatively low insider ownership, we are very cautious about the stock. We'd certainly practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing BPM Minerals. Every company has risks, and we've spotted 5 warning signs for BPM Minerals (of which 3 are a bit concerning!) you should know about.

But note: BPM Minerals 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.