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Over the last year, a good number of insiders have significantly increased their holdings in Bravura Solutions Limited (ASX:BVS). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Bravura Solutions
The Last 12 Months Of Insider Transactions At Bravura Solutions
Over the last year, we can see that the biggest insider purchase was by Chief Commercial Officer & Executive Director Shezad Okhai for AU$826k worth of shares, at about AU$0.44 per share. Even though the purchase was made at a significantly lower price than the recent price (AU$0.82), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Bravura Solutions 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 always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of Bravura Solutions
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Bravura Solutions insiders have about 1.9% of the stock, worth approximately AU$7.0m. I generally like to see higher levels of ownership.
So What Does This Data Suggest About Bravura Solutions Insiders?
The fact that there have been no Bravura Solutions insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Bravura Solutions stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 1 warning sign for Bravura Solutions and we suggest you have a look.