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Bristol-Myers Squibb Insiders Sell US$25m Of Stock, Possibly Signalling Caution

In the last year, many Bristol-Myers Squibb Company (NYSE:BMY) insiders sold a substantial stake in the company which may have sparked shareholders' attention. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.

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.

View our latest analysis for Bristol-Myers Squibb

The Last 12 Months Of Insider Transactions At Bristol-Myers Squibb

The Chairman of the Board & CEO, Giovanni Caforio, made the biggest insider sale in the last 12 months. That single transaction was for US$18m worth of shares at a price of US$74.65 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$51.25). So it may not shed much light on insider confidence at current levels.

In the last year Bristol-Myers Squibb insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
insider-trading-volume

I will like Bristol-Myers Squibb better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Bristol-Myers Squibb Insiders Are Selling The Stock

Over the last three months, we've seen significant insider selling at Bristol-Myers Squibb. In total, insiders sold US$1.1m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Insider Ownership Of Bristol-Myers Squibb

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. Insiders own 0.06% of Bristol-Myers Squibb shares, worth about US$66m. 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 Bristol-Myers Squibb Insiders?

Insiders haven't bought Bristol-Myers Squibb stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But since Bristol-Myers Squibb is profitable and growing, we're not too worried by this. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Bristol-Myers Squibb. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Bristol-Myers Squibb.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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