How Much Are Blackline Safety Corp. (CVE:BLN) Insiders Taking Off The Table?
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It is not uncommon to see companies perform well in the years after insiders buy shares. 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 Blackline Safety Corp. (CVE:BLN), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. 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 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'.
Check out our latest analysis for Blackline Safety
Blackline Safety Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Independent Director, John Finbow, for CA$139k worth of shares, at about CA$5.50 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of CA$6.05. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 2.9% of John Finbow's stake.
In the last twelve months insiders purchased 27020 shares for CA$145k. On the other hand they divested 39500 shares, for CA$222k. All up, insiders sold more shares in Blackline Safety than they bought, over the last year. You can see the insider transactions (by 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!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Blackline Safety Insiders Bought Stock Recently
There was some insider buying at Blackline Safety over the last quarter. Independent Director John Finbow bought CA$47k worth of shares in that time. However, Chief Operating Officer Kevin Meyers netted CA$31k for sales. While it's good to see the insider buying, the net amount bought isn't enough for us to gain much confidence from it.
Does Blackline Safety 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. Blackline Safety insiders own about CA$21m worth of shares. That equates to 7.3% 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 Does This Data Suggest About Blackline Safety Insiders?
We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. We're a little cautious about the insider selling at Blackline Safety. But it's good to see that insiders own shares in the company. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Blackline Safety.
But note: Blackline Safety 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 aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
