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We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Boston Private Financial Holdings, Inc. (NASDAQ:BPFH), 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 equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
The Last 12 Months Of Insider Transactions At Boston Private Financial Holdings
Executive Vice President David Kaye made the biggest insider sale in the last 12 months. That single transaction was for US$359k worth of shares at a price of US$13.08 each. That means that an insider was selling shares at around the current price of US$11.63. They could have a variety of motivations for selling, but it’s still not particularly encouraging to see. We usually pause to reflect on the potential that a stock has a high valuation, if insiders have been selling at around the current price.
In the last twelve months insiders purchased 49.28k shares for US$662k. But they sold 59.50k for US$878k. All up, insiders sold more shares in Boston Private Financial Holdings than they bought, over the last year. The sellers received a price of around US$14.76, on average. We are not joyful about insider selling. But we note that the selling, on average, was at well above the recently traded price of US$11.63. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Boston Private Financial Holdings better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insiders at Boston Private Financial Holdings Have Sold Stock Recently
The last three months saw some Boston Private Financial Holdings insider selling. In total, insiders sold US$397k worth of shares in that time. But they spent US$373k on buying, too. While it’s not great to see insider selling, the net amount sold isn’t enough for us to want to read anything into it.
Does Boston Private Financial Holdings Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It appears that Boston Private Financial Holdings insiders own 2.3% of the company, worth about US$22m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Boston Private Financial Holdings Tell Us?
Insider purchases have outweighed sales, in the last three months. But the difference isn’t much. We’re a little cautious about the insider selling at Boston Private Financial Holdings. But we do like the fact that insiders own a fair chunk of the company. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Boston Private Financial Holdings.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.