Ashley Fraser Bought 140% More Shares In Brightstar Resources

Yahoo

24-04-2025

Those following along with Brightstar Resources Limited (ASX:BTR) will no doubt be intrigued by the recent purchase of shares by Ashley Fraser, Non-Executive Director of the company, who spent a stonking AU$4.2m on stock at an average price of AU$0.53. That increased their holding by a full 140%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.
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Over the last year, we can see that the biggest insider purchase was by insider Jack Yetiv for AU$4.4m worth of shares, at about AU$0.015 per share. We do like to see buying, but this purchase was made at well below the current price of AU$0.51. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
While Brightstar Resources insiders bought shares during the last year, they didn't sell. The average buy price was around AU$0.024. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. 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!
View our latest analysis for Brightstar Resources
Brightstar Resources 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.
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Brightstar Resources insiders own 12% of the company, worth about AU$27m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Brightstar Resources shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Brightstar Resources has 3 warning signs (2 can't be ignored!) that deserve your attention before going any further with your analysis.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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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