Those who follow with BlueBet Holdings Ltd (ASX:BBT) will no doubt be intrigued by the recent stock purchase by the company’s Executive Chairman, Michael Sullivan, who spent A$759,000 on shares at an average price of A$0.76. There’s no denying that a buy of this magnitude suggests a belief in a better future, although we note that proportionally it only increased their stake by 1.2%.
Check out our latest analysis for BlueBet Holdings
BlueBet Holdings Insider Trading Over the Last Year
Notably, this recent buy by Michael Sullivan is the biggest insider buy of BlueBet Holdings stock we have seen in the last year. This means that an insider was happy to buy shares at around the current price of AU$0.81. Although their perspective has changed since the purchase, it at least suggests that they have confidence in the future of the company. If someone is buying stocks well below current prices, that’s a good sign overall, but keep in mind that they may no longer see value. The good news for BlueBet Holdings shareholders is that an insider was buying at a price close to the current price. The only individual insider to buy in the last year was Michael Sullivan.
The chart below shows insider trading (by companies and individuals) over the past year. If you want to know exactly who sold, how much and when, just click on the chart below!
There are always plenty of stocks that insiders are buying. So if it suits your style you can check each stock one by one or you can take a look at this free list of companies. (Hint: insiders bought them).
Insider ownership of BlueBet Holdings
Examining the total insider holdings in a company can help you know if they are well aligned with common shareholders. High insider participation often makes company management more concerned with the interests of shareholders. BlueBet Holdings insiders own approximately A$107 million in shares (or 66% of the company). This type of significant insider ownership generally increases the chances that the company will be run in the best interests of all shareholders.
So what does this data suggest about BlueBet Holdings insiders?
Good to see the recent insider buying. We also rely on the longer-term picture of insider trading. But on the other hand, the company has made a loss in the last year, which makes us a bit cautious. When combined with notable insider ownership, these factors suggest that BlueBet Holdings insiders are well aligned and most likely think the stock price is too low. That’s what I like to see! So these insider trades can help us build a thesis on the stock, but it’s also helpful to know the risks this company faces. In terms of investment risks, we have identified 1 warning sign with BlueBet Holdings and understanding this should be part of your investment process.
Sure, you might find a fantastic investment by looking elsewhere. So take a look at this free list of interesting companies.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.