Anyone interested in Barrett Business Services, Inc. (NASDAQ:BBSI) should probably be aware that the Independent Director, Thomas Carley, recently divested US$189k worth of shares in the company, at an average price of US$41.24 each. However, the silver lining is that the sale only reduced their total holding by 4.2%, so we're hesitant to read anything much into it, on its own.
The Last 12 Months Of Insider Transactions At Barrett Business Services
In the last twelve months, the biggest single sale by an insider was when the President, Gary Kramer, sold US$1.2m worth of shares at a price of US$35.05 per share. That means that even when the share price was below the current price of US$42.35, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 13% of Gary Kramer's stake.
In total, Barrett Business Services insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Barrett Business Services insiders own 3.1% of the company, worth about US$33m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Barrett Business Services Insiders?
Unfortunately, there has been more insider selling of Barrett Business Services stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But since Barrett Business Services 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'd practice some caution before buying! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example, Barrett Business Services has 2 warning signs (and 1 which can't be ignored) we think you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
