Positive Signs As Multiple Insiders Buy Biome Australia Stock

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Biome Australia Limited’s (ASX:BIO) instance, it’s good news for shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Biome Australia

Biome Australia Insider Transactions Over The Last Year

In fact, the recent purchase by Richard Tegoni was the biggest purchase of Biome Australia shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than AU$0.095 (the recent price), an insider wanted to purchase shares. 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While Biome Australia insiders bought shares during the last year, they didn’t sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insiders At Biome Australia Have Bought Stock Recently

Over the last quarter, Biome Australia insiders have spent a meaningful amount on shares. insider Richard Tegoni spent AU$76k on stock, and there wasn’t any selling. This makes one think the business has some good points.

Insider Ownership Of Biome Australia

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Biome Australia insiders own 34% of the company, worth about AU$6.5m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Biome Australia Tell Us?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn’t make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Biome Australia we think they are probably pretty confident of a bright future. 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 4 warning signs (1 makes us a bit uncomfortable!) that you ought to be aware of before buying any shares in Biome Australia.

Of course Biome Australia 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, but not derivative transactions.

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.

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