It may not be a big deal, but we BODY SCIENCE LIMITED. (ASX:BOD) Non-Executive Chairman David Baker recently bought AU$149,000 worth of shares at AU$0.08 per share. While we hesitate to get too excited about a purchase of this size, we note that it certainly increased their holdings by his 42%.
Check out our latest analysis for Bod Science.
Insider transactions in Bod Science over the last 12 months
Notably, the recent purchase by David Baker is the largest insider purchase of Bodo Science shares we’ve seen over the last year. This means that an insider was willing to buy shares above his current price of AU$0.069. It’s entirely possible that they regret their purchase, but it’s more likely that they’re bullish on the company. In our view, the price insiders pay for shares is very important. Generally, if you paid more than the current price, it’s more reassuring because it suggests you saw value even at a higher level.
Body Science insiders bought shares within the last year, but did not sell. The chart below depicts insider transactions (by companies and individuals) over the past year. You can click on the graph below to see the exact details of each insider transaction.
Bod Science isn’t the only stock that insiders are buying.So take a look at this free A list of growing companies with insider buying.
Insider ownership in Bod Science
Looking at the total insider shares in a company can help you determine whether they are well aligned with common shareholders. Typically, the higher the insider ownership, the more likely it is that insiders are incentivized to build the company for the long term. It appears that Body Science insiders own 15% of the company’s shares, worth about AU$1.9m. Certainly, we’ve seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and other shareholders.
So what do Body Science’s insider trading show?
Recent insider buying is certainly positive. We also have confidence from the long-term profile of insider trading. However, on the other hand, the company made a loss last year, making it a little more cautious. Combined with the high-profile insider ownership, these factors suggest that Body Science insiders are well aligned and may believe the stock price is too low. We like to know what’s going on with insider ownership and transactions, but we also always consider what risks a stock faces before making any investment decisions. At Simply Wall St, we found Bod Science doing the following: 7 warning signs (Five is a little off-putting!) Please note these points before proceeding with your analysis.
However, please note: Body Science may not be the best stock to buy.So take a look at this free List of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are individuals who report their transactions to the relevant regulatory body. The Company currently only accounts for open market transactions and private dispositions of direct profits, and does not account for derivative transactions or indirect profits.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodologies, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.