Insiders at Bluechiip Limited (ASX:BCT) must be relieved they sold stock as market valuation descends to AU$24m

By
Simply Wall St
Published
February 23, 2022
ASX:BCT
Source: Shutterstock

By selling AU$307k worth of Bluechiip Limited (ASX:BCT) stock at an average sell price of AU$0.039 over the last year, insiders seemed to have made the most of their holdings. The company's market worth decreased by AU$3.6m over the past week after the stock price dropped 14%, although insiders were able to minimize their losses

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Bluechiip

Bluechiip Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, James Craig, sold AU$198k worth of shares at a price of AU$0.044 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of AU$0.038. So it is hard to draw any strong conclusion from it.

All up, insiders sold more shares in Bluechiip than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
ASX:BCT Insider Trading Volume February 23rd 2022

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Bluechiip

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It appears that Bluechiip insiders own 17% of the company, worth about AU$4.1m. 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 Do The Bluechiip Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Bluechiip shares in the last quarter. Our analysis of Bluechiip insider transactions leaves us cautious. But it's good to see that insiders own shares in the company. 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. Case in point: We've spotted 4 warning signs for Bluechiip you should be aware of, and 2 of them make us uncomfortable.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.

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