Insiders Could Have Profited By Holding onto Belluscura Shares Despite 19% Drop

Belluscura plc's (LON:BELL) value has fallen 19% in the last week, but insiders who sold US$696k worth of stock over the last year have had less success. Insiders might have been better off holding onto their shares, given that the average selling price of US$0.16 is still below the current share price.

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

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Belluscura Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, David Poutney, for UK£696k worth of shares, at about UK£0.16 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. It's of some comfort that this sale was conducted at a price well above the current share price, which is UK£0.0055. So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was David Poutney.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Belluscura

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Does Belluscura Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Belluscura insiders own about UK£661k worth of shares. That equates to 30% 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 Belluscura Tell Us?

It doesn't really mean much that no insider has traded Belluscura shares in the last quarter. We don't take much encouragement from the transactions by Belluscura insiders. But we do like the fact that insiders own a fair chunk of the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 6 warning signs (4 are concerning!) that you ought to be aware of before buying any shares in Belluscura.

But note: Belluscura 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.