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Over the last year, a good number of insiders have significantly increased their holdings in The Boeing Company (NYSE:BA). 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 do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Boeing
In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Chairman Lawrence Kellner bought US$1.0m worth of shares at a price of US$209 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$139). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Happily, we note that in the last year insiders paid US$1.1m for 5.48k shares. But insiders sold 990.00 shares worth US$220k. In total, Boeing insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Boeing is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Boeing Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.07% of Boeing shares, worth about US$58m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Boeing Tell Us?
It doesn't really mean much that no insider has traded Boeing shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Boeing and we see no evidence to suggest they are worried about the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Our analysis shows 2 warning signs for Boeing (1 is a bit unpleasant!) and we strongly recommend you look at them before investing.
But note: Boeing may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.