When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in BeMetals Corp.'s (CVE:BMET) instance, it's good news for shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for BeMetals

BeMetals Insider Transactions Over The Last Year

The Independent Director Clive Johnson made the biggest insider purchase in the last 12 months. That single transaction was for CA$500k worth of shares at a price of CA$0.10 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.09). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Notably Clive Johnson was also the biggest seller.

Over the last year, we can see that insiders have bought 10.62m shares worth CA$1.0m. But insiders sold 2.66m shares worth CA$349k. In the last twelve months there was more buying than selling by BeMetals insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

BeMetals is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Does BeMetals Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that BeMetals insiders own 16% of the company, worth about CA$3.3m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About BeMetals Insiders?

The fact that there have been no BeMetals insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Insiders own shares in BeMetals and we see no evidence to suggest they are worried about the future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we've found that BeMetals has 4 warning signs (2 are concerning!) that deserve your attention before going any further with your analysis.