Bluesky Digital Assets Insiders Lose Out As Stock Sinks To CA$0.14

The recent 28% drop in Bluesky Digital Assets Corp.'s (CSE:BTC) stock could come as a blow to insiders who purchased CA$174.6k worth of stock at an average buy price of CA$0.21 over the past 12 months. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth CA$116.9k, which is not what they expected.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Bluesky Digital Assets

Bluesky Digital Assets Insider Transactions Over The Last Year

In fact, the recent purchase by Independent Director Alan Grant was not their only acquisition of Bluesky Digital Assets shares this year. Earlier in the year, they paid CA$0.28 per share in a CA$112k purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.14). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Alan Grant was the only individual insider to buy shares in the last twelve months.

Alan Grant bought a total of 835.00k shares over the year at an average price of CA$0.21. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Bluesky Digital Assets 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.

Bluesky Digital Assets Insiders Bought Stock Recently

We saw some Bluesky Digital Assets insider buying shares in the last three months. Independent Director Alan Grant bought CA$165k worth of shares in that time. However, they netted CA$129k for sales. It is nice to see that insiders have bought, but the quantum isn't large enough to get us excited.

Does Bluesky Digital Assets Boast High 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. We usually like to see fairly high levels of insider ownership. Based on our data, Bluesky Digital Assets insiders have about 4.8% of the stock, worth approximately CA$397k. I generally like to see higher levels of ownership.

What Might The Insider Transactions At Bluesky Digital Assets Tell Us?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. The net investment is not enough to encourage us much. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it'd be more encouraging if Bluesky Digital Assets insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Bluesky Digital Assets. To assist with this, we've discovered 5 warning signs that you should run your eye over to get a better picture of Bluesky Digital Assets.

Of course Bluesky Digital Assets 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.