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Insiders who placed huge bets on The Boeing Company (NYSE:BA) earlier this year would be disappointed with the 13% drop

The recent 13% drop in The Boeing Company's (NYSE:BA) stock could come as a blow to insiders who purchased US$1.1m worth of stock at an average buy price of US$209 over the past 12 months. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth US$699k, which is not what they expected.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Boeing

The Last 12 Months Of Insider Transactions At Boeing

In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Chairman Lawrence Kellner bought US$1.0m worth of shares at a price of US$209 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$128). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months insiders purchased 5.48k shares for US$1.1m. But insiders sold 990.00 shares worth US$220k. Overall, Boeing insiders were net buyers during the last year. 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!

insider-trading-volume
insider-trading-volume

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

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 appears that Boeing insiders own 0.07% of the company, worth about US$53m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Boeing Insiders?

It doesn't really mean much that no insider has traded Boeing shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Boeing and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Boeing. At Simply Wall St, we found 1 warning sign for Boeing that deserve your attention before buying any shares.

But note: Boeing may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, 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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