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Bullish insiders at Brookfield Asset Management Inc. (TSE:BAM.A) loaded up on US$33m of stock earlier this year

·3 min read

In the last year, multiple insiders have substantially increased their holdings of Brookfield Asset Management Inc. (TSE:BAM.A) stock, indicating that insiders' optimism about the company's prospects has increased.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Brookfield Asset Management

The Last 12 Months Of Insider Transactions At Brookfield Asset Management

Over the last year, we can see that the biggest insider sale was by the Director, Jack Cockwell, for CA$14m worth of shares, at about CA$71.00 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of CA$57.78. So it may not tell us anything about how insiders feel about the current share price. Notably Jack Cockwell was also the biggest buyer, having purchased CA$33m worth of shares.

In the last twelve months insiders purchased 545.45k shares for CA$33m. On the other hand they divested 462.93k shares, for CA$32m. Overall, Brookfield Asset Management insiders were net buyers during the last year. The average buy price was around CA$59.60. I'd consider this a positive as it suggests insiders see value at around the current 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!


Brookfield Asset Management is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insiders at Brookfield Asset Management Have Bought Stock Recently

Over the last quarter, Brookfield Asset Management insiders have spent a meaningful amount on shares. Overall, two insiders shelled out CA$2.1m for shares in the company -- and none sold. This makes one think the business has some good points.

Does Brookfield Asset Management Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Brookfield Asset Management insiders own 11% of the company, worth about CA$9.9b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Brookfield Asset Management Insiders?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Brookfield Asset Management insiders are well aligned, and quite possibly think the share price is too low. Looks promising! 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. At Simply Wall St, we've found that Brookfield Asset Management has 3 warning signs (1 is potentially serious!) that deserve your attention before going any further with your analysis.

Of course Brookfield Asset Management may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.

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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