Insider Returns Down To AU$840k As Bellavista Resources' Stock Dips 12%

Insiders who bought Bellavista Resources Limited (ASX:BVR) stock lover the last 12 months are probably not as affected by last week’s 12% loss. Even after accounting for the recent loss, the AU$758.3k worth of stock purchased by them is now worth AU$1.60m or in other words, their investment continues to give good returns.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Bellavista Resources

Bellavista Resources Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Stephen Parsons for AU$579k worth of shares, at about AU$0.38 per share. So it's clear an insider wanted to buy, at around the current price, which is AU$0.38. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Bellavista Resources share holders is that insiders were buying at near the current price.

Bellavista Resources insiders may have bought shares in the last year, but they didn't sell any. They paid about AU$0.18 on average. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Bellavista Resources is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders At Bellavista Resources Have Bought Stock Recently

It's good to see that Bellavista Resources insiders have made notable investments in the company's shares. We can see that insider Stephen Parsons paid AU$579k for shares in the company. No-one sold. This makes one think the business has some good points.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Bellavista Resources insiders own about AU$14m worth of shares. That equates to 36% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Bellavista Resources Insiders?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Bellavista Resources we think they are probably pretty confident of a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For instance, we've identified 4 warning signs for Bellavista Resources (2 are a bit concerning) you should be aware of.

Of course Bellavista Resources 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.

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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.