Did bluebird bio, Inc. (NASDAQ:BLUE) Insiders Sell Shares?
It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell bluebird bio, Inc. (NASDAQ:BLUE), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'
Check out our latest analysis for bluebird bio
The Last 12 Months Of Insider Transactions At bluebird bio
The President, Nick Leschly, made the biggest insider sale in the last 12 months. That single transaction was for US$838k worth of shares at a price of US$114 each. That means that an insider was selling shares at slightly below the current price (US$121). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 4.2% of Nick Leschly's stake.
We note that in the last year insiders divested 18234 shares for a total of US$2.1m. bluebird bio insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by 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!
I will like bluebird bio better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Have bluebird bio Insiders Traded Recently?
The last three months saw some bluebird bio insider selling. VP of Finance Kory Wentworth divested only US$7.8k worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the amount sold isn't enough for us to put any weight on it.
Does bluebird bio 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. bluebird bio insiders own about US$29m worth of shares. That equates to 0.4% of the company. 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 Do The bluebird bio Insider Transactions Indicate?
Our data shows a little more insider selling, but no insider buying, in the last three months. But the sales were small, so we're not concerned. Recent insider selling makes us a little nervous, in light of the broader picture of bluebird bio insider transactions. But we do like the fact that insiders own a fair chunk of the company. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for bluebird bio.
Of course bluebird bio 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
