We wouldn't blame BCE Inc. (TSE:BCE) shareholders if they were a little worried about the fact that Wade Oosterman, the Vice Chair & Group President recently netted about CA$7.2m selling shares at an average price of CA$64.09. That sale reduced their total holding by 48% which is hardly insignificant, but far from the worst we've seen.
BCE Insider Transactions Over The Last Year
In fact, the recent sale by Vice Chair & Group President Wade Oosterman was not their only sale of BCE shares this year. Earlier in the year, they fetched CA$64.09 per share in a -CA$7.2m sale. That means that even when the share price was slightly below the current price of CA$64.26, an insider wanted to cash in some shares. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 48% of Wade Oosterman's holding.
Over the last year we saw more insider selling of BCE shares, than buying. 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!
I will like BCE better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.06% of BCE shares, worth about CA$37m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At BCE Tell Us?
Insiders haven't bought BCE stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. But since BCE is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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If you spot an error that warrants correction, please contact the editor at email@example.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.