Stock Analysis

Insider Traders Lose UK£50k As Brave Bison Group Drops

Published
AIM:BBSN

Insiders who bought UK£152.9k worth of Brave Bison Group plc's (LON:BBSN) stock at an average buy price of UK£0.023 over the last year may be disappointed by the recent 12% decrease in the stock. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth UK£102.5k which is not ideal.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Brave Bison Group

The Last 12 Months Of Insider Transactions At Brave Bison Group

In the last twelve months, the biggest single purchase by an insider was when insider Simon Davies bought UK£143k worth of shares at a price of UK£0.023 per share. That means that even when the share price was higher than UK£0.015 (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. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Brave Bison Group insiders may have bought shares in the last year, but they didn't sell any. 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!

AIM:BBSN Insider Trading Volume November 11th 2023

Brave Bison Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Are Brave Bison Group Insiders Buying Or Selling?

Over the last three months, we've seen a bit of insider buying at Brave Bison Group. CFO, Company Secretary & Director Philippa Norridge purchased UK£5.0k worth of shares in that period. We like it when there are only buyers, and no sellers. However, in this case the amount invested recently is quite small.

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. Brave Bison Group insiders own about UK£6.2m worth of shares. That equates to 32% 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.

So What Do The Brave Bison Group Insider Transactions Indicate?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. That said, the purchases were not large. However, our analysis of transactions over the last year is heartening. Insiders own shares in Brave Bison Group 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 Brave Bison Group. For example - Brave Bison Group has 3 warning signs we think you should be aware of.

But note: Brave Bison Group 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.