Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of BCI Minerals Limited (ASX:BCI), that sends out a positive message to the company's shareholders.

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.

Check out our latest analysis for BCI Minerals

The Last 12 Months Of Insider Transactions At BCI Minerals

The Non-Executive Chairman Brian O'Donnell made the biggest insider purchase in the last 12 months. That single transaction was for AU$266k worth of shares at a price of AU$0.25 each. So it's clear an insider wanted to buy, at around the current price, which is AU$0.26. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.

BCI Minerals insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

Does BCI Minerals Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that BCI Minerals insiders own 1.5% of the company, worth about AU$11m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We do generally prefer see higher levels of insider ownership.

So What Do The BCI Minerals Insider Transactions Indicate?

It doesn't really mean much that no insider has traded BCI Minerals shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in BCI Minerals 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 BCI Minerals. When we did our research, we found 3 warning signs for BCI Minerals (2 are a bit concerning!) that we believe deserve your full attention.

Of course BCI Minerals 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.