Whilst it may not be a huge deal, we thought it was good to see that the Benjamin Hornigold Limited (ASX:BHD) Non-Executive Director, Sulieman Ravell, recently bought AU$109k worth of stock, for AU$0.22 per share. That purchase might not be huge but it did increase their holding by 26%.

View our latest analysis for Benjamin Hornigold

The Last 12 Months Of Insider Transactions At Benjamin Hornigold

In fact, the recent purchase by Sulieman Ravell was the biggest purchase of Benjamin Hornigold shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of AU$0.22. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Sulieman Ravell was the only individual insider to buy during the last year.

Sulieman Ravell purchased 1.23m shares over the year. The average price per share was AU$0.23. The chart below shows insider transactions (by companies and individuals) over the last year. 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 undervalued small cap companies that insiders are buying.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Benjamin Hornigold insiders own 28% of the company, worth about AU$1.5m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Benjamin Hornigold Insiders?

The recent insider purchase is heartening. 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 Benjamin Hornigold we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Benjamin Hornigold. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Benjamin Hornigold.

Of course Benjamin Hornigold 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.