We wouldn't blame BlackRock, Inc. (NYSE:BLK) shareholders if they were a little worried about the fact that J. Kushel, the Senior MD & Head of the Portfolio Management Group recently netted about US$1.7m selling shares at an average price of US$852. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 1.4%.
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The Last 12 Months Of Insider Transactions At BlackRock
Notably, that recent sale by J. Kushel is the biggest insider sale of BlackRock shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (US$908). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 1.4% of J. Kushel's holding.
J. Kushel ditched 2.43k shares over the year. The average price per share was US$869. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
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Does BlackRock Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. BlackRock insiders own 1.5% of the company, currently worth about US$2.2b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At BlackRock Tell Us?
An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. On the plus side, BlackRock makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 1 warning sign for BlackRock that deserve your attention before buying any shares.
But note: BlackRock 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 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.
