BeMetals' Recent Gains Improve Losses On Insider Purchases Worth CA$847.0k

Insiders who bought CA$847.0k worth of BeMetals Corp. (CVE:BMET) stock in the last year have seen some of their losses recouped as the stock gained 14% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled CA$508k since the time of purchase.

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.

Check out our latest analysis for BeMetals

BeMetals Insider Transactions Over The Last Year

The Independent Director Clive Johnson made the biggest insider purchase in the last 12 months. That single transaction was for CA$500k worth of shares at a price of CA$0.10 each. That means that even when the share price was higher than CA$0.04 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. We note that Clive Johnson was both the biggest buyer and the biggest seller.

Over the last year, we can see that insiders have bought 8.48m shares worth CA$847k. On the other hand they divested 2.66m shares, for CA$349k. In the last twelve months there was more buying than selling by BeMetals insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

BeMetals is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Have BeMetals Insiders Traded Recently?

There was only a small bit of insider buying, worth CA$945, in the last three months. So it is hard to draw any conclusion about how insiders are feeling about the stock, from these recent trades.

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. It appears that BeMetals insiders own 16% of the company, worth about CA$1.5m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About BeMetals Insiders?

Our data shows a little insider buying, but no selling, in the last three months. The net investment is not enough to encourage us much. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in BeMetals and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing BeMetals. Our analysis shows 6 warning signs for BeMetals (5 are a bit concerning!) and we strongly recommend you look at these before investing.

But note: BeMetals 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.