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We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell BrightSphere Investment Group Inc. (NYSE:BSIG), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
The Last 12 Months Of Insider Transactions At BrightSphere Investment Group
The insider Guang Yang made the biggest insider purchase in the last 12 months. That single transaction was for US$507k worth of shares at a price of US$10.18 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$15.80. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Guang Yang purchased 50.00k shares over the year. The average price per share was US$10.14. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
BrightSphere Investment Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of BrightSphere Investment Group
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. From looking at our data, insiders own US$3.4m worth of BrightSphere Investment Group stock, about 0.3% of the company. I generally like to see higher levels of ownership.
So What Do The BrightSphere Investment Group Insider Transactions Indicate?
It doesn't really mean much that no insider has traded BrightSphere Investment Group shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think BrightSphere Investment Group insiders are doubting 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. While conducting our analysis, we found that BrightSphere Investment Group has 2 warning signs and it would be unwise to ignore these.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
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. 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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