Insider Spends AU$125k Buying More Shares In BikeExchange

Whilst it may not be a huge deal, we thought it was good to see that the BikeExchange Limited (ASX:BEX) Independent Non-Executive Chair, Dominic O'Hanlon, recently bought AU$125k worth of stock, for AU$0.50 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 31%.

Check out our latest analysis for BikeExchange

The Last 12 Months Of Insider Transactions At BikeExchange

In fact, the recent purchase by Dominic O'Hanlon was the biggest purchase of BikeExchange 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$0.35. 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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

While BikeExchange insiders bought shares during the last year, they didn't sell. The average buy price was around AU$0.35. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. BikeExchange insiders own about AU$1.4m worth of shares. That equates to 21% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At BikeExchange Tell Us?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in BikeExchange shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing BikeExchange. To assist with this, we've discovered 4 warning signs that you should run your eye over to get a better picture of BikeExchange.

Of course BikeExchange 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.