Stock Analysis

Insiders who bought in the last 12 months lose an additional US$130k as Blackboxstocks Inc. (NASDAQ:BLBX) drops to US$9.3m

  •  Updated
NasdaqCM:BLBX
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The recent 12% drop in Blackboxstocks Inc.'s (NASDAQ:BLBX) stock could come as a blow to insiders who purchased US$200k worth of stock at an average buy price of US$2.10 over the past 12 months. 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 US$70k which is not ideal.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Before we look at these insider transactions though, you might like to know that our analysis indicates that BLBX is potentially overvalued!

The Last 12 Months Of Insider Transactions At Blackboxstocks

Over the last year, we can see that the biggest insider purchase was by Non-Employee Independent Director Ray Balestri for US$100k worth of shares, at about US$5.00 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$0.73). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Ray Balestri was the only individual insider to buy during the last year.

Ray Balestri bought 95.37k shares over the last 12 months at an average price of US$2.10. 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!

insider-trading-volume
NasdaqCM:BLBX Insider Trading Volume September 29th 2022

Blackboxstocks is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Blackboxstocks 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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Blackboxstocks insiders own 42% of the company, worth about US$3.9m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Blackboxstocks Tell Us?

It doesn't really mean much that no insider has traded Blackboxstocks shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like Blackboxstocks insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Blackboxstocks. Every company has risks, and we've spotted 4 warning signs for Blackboxstocks (of which 1 shouldn't be ignored!) 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, but not derivative transactions.

Valuation is complex, but we're helping make it simple.

Find out whether Blackboxstocks is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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About NasdaqCM:BLBX

Blackboxstocks

Blackboxstocks Inc. develops and markets financial technology and social media hybrid platform.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Valuation3
Future Growth2
Past Performance0
Financial Health4
Dividends0

Read more about these checks in the individual report sections or in our analysis model.

Adequate balance sheet and fair value.