We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. 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 shareholders might well want to know whether insiders have been buying or selling shares in Boston Private Financial Holdings, Inc. (NASDAQ:BPFH).
Do Insider Transactions Matter?
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, most countries require that the company discloses such transactions to the market.
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'.
Boston Private Financial Holdings Insider Transactions Over The Last Year
The CEO, President & Director Anthony DeChellis made the biggest insider purchase in the last 12 months. That single transaction was for US$457k worth of shares at a price of US$7.50 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$13.24. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Happily, we note that in the last year insiders paid US$836k for 116.05k shares. But insiders sold 11.94k shares worth US$115k. In the last twelve months there was more buying than selling by Boston Private Financial Holdings insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Boston Private Financial Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at Boston Private Financial Holdings Have Sold Stock Recently
The last quarter saw substantial insider selling of Boston Private Financial Holdings shares. Specifically, Executive VP and Chief Operating & Platform Officer Maura Almy ditched US$67k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.
Insider Ownership of Boston Private Financial Holdings
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Boston Private Financial Holdings insiders own about US$13m worth of shares. That equates to 1.2% of the company. 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 Do The Boston Private Financial Holdings Insider Transactions Indicate?
An insider hasn't bought Boston Private Financial Holdings stock in the last three months, but there was some selling. On the other hand, the insider transactions over the last year are encouraging. We like that insiders own a fair amount of the company. So the recent selling doesn't worry us too much. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 4 warning signs that you should run your eye over to get a better picture of 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.
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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