We'd be surprised if Boston Private Financial Holdings, Inc. (NASDAQ:BPFH) shareholders haven't noticed that the Executive VP & Chief Risk Officer, W. MacDonald, recently sold US$231k worth of stock at US$11.25 per share. That sale was 18% of their holding, so it does make us raise an eyebrow.
Boston Private Financial Holdings Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the insider, David Kaye, sold US$359k worth of shares at a price of US$13.08 per share. So we know that an insider sold shares at around the present share price of US$11.47. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
In the last twelve months insiders purchased 41586 shares for US$486k. But they sold 51160 for US$629k. In total, Boston Private Financial Holdings insiders sold more than they bought over the last year. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Boston Private Financial Holdings
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 2.4% of Boston Private Financial Holdings shares, worth about US$23m. 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 Boston Private Financial Holdings Insider Transactions Indicate?
The stark truth for Boston Private Financial Holdings is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since Boston Private Financial Holdings is profitable and growing, we're not too worried by this. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Boston Private Financial Holdings.
But note: Boston Private Financial Holdings 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.
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