Insiders may be rethinking their US$1.9m Bed Bath & Beyond Inc. (NASDAQ:BBBY) investment now that the company has lost US$143m in value
Insiders who acquired US$1.9m worth of Bed Bath & Beyond Inc.'s (NASDAQ:BBBY) stock at an average price of US$22.26 in the past 12 months may be dismayed by the recent 5.4% price decline. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only US$1.2m.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Bed Bath & Beyond
The Last 12 Months Of Insider Transactions At Bed Bath & Beyond
The COO, Executive VP & President of buybuy BABY Inc, John Hartmann, made the biggest insider sale in the last 12 months. That single transaction was for US$1.4m worth of shares at a price of US$31.94 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$13.80). So it may not tell us anything about how insiders feel about the current share price.
Over the last year, we can see that insiders have bought 84.50k shares worth US$1.9m. But insiders sold 54.83k shares worth US$1.7m. In total, Bed Bath & Beyond insiders bought more than they sold over the last year. They paid about US$22.26 on average. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Bed Bath & Beyond is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Bed Bath & Beyond Insiders Bought Stock Recently
It's good to see that Bed Bath & Beyond insiders have made notable investments in the company's shares. In total, insiders bought US$982k worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.
Does Bed Bath & Beyond Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 6.9% of Bed Bath & Beyond shares, worth about US$91m. 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 Bed Bath & Beyond Insider Transactions Indicate?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Bed Bath & Beyond we think they are probably pretty confident of a bright 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. For example, Bed Bath & Beyond has 2 warning signs (and 1 which doesn't sit too well with us) we think you should know about.
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.
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.
