Brixton Metals Insider Sellers Vindicated After 12% Drop

By selling CA$72k worth of Brixton Metals Corporation (CVE:BBB) stock at an average sell price of CA$0.052 over the last year, insiders seemed to have made the most of their holdings. The company's market valuation decreased by CA$5.5m after the stock price dropped 12% over the past week, but insiders were spared from painful losses.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Brixton Metals

Over the last year, we can see that the biggest insider sale was by the Independent Director, Ian Ball, for CA$72k worth of shares, at about CA$0.06 per share. That means that an insider was selling shares at slightly below the current price (CA$0.075). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was 58% of Ian Ball's holding. The only individual insider seller over the last year was Ian Ball. Notably Ian Ball was also the biggest buyer, having purchased CA$50k worth of shares.

In the last twelve months insiders purchased 572.69k shares for CA$50k. But they sold 1.40m shares for CA$72k. 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!

Check out our latest analysis for Brixton Metals

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Insiders At Brixton Metals Have Bought Stock Recently

There was some insider buying at Brixton Metals over the last quarter. Co-Founder Cale Moodie shelled out CA$15k for shares in that time. It's great to see that insiders are only buying, not selling. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Does Brixton Metals Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Based on our data, Brixton Metals insiders have about 1.4% of the stock, worth approximately CA$607k. We consider this fairly low insider ownership.

So What Do The Brixton Metals Insider Transactions Indicate?

Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. Our analysis of Brixton Metals insider transactions leaves us unenthusiastic. And usually insiders own more stock in the company, according to our data. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Brixton Metals. Every company has risks, and we've spotted 4 warning signs for Brixton Metals (of which 2 make us uncomfortable!) you should know about.

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 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.