Even if it’s not a huge purchase, we think it was good to see that Frank Bumstead, the Independent Director of Brookdale Senior Living Inc. (NYSE:BKD) recently shelled out US$63k to buy stock, at US$6.28 per share. However, we do note that it only increased their holding by 4.6%, and it wasn’t a huge purchase by absolute value, either.
The Last 12 Months Of Insider Transactions At Brookdale Senior Living
In fact, the recent purchase by Frank Bumstead was the biggest purchase of Brookdale Senior Living shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$6.39 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. While we always like to see insider buying, it’s less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we’re pleased to report that the insider purchases were made at close to current prices.
In the last twelve months Brookdale Senior Living insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Brookdale Senior Living is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership of Brookdale Senior Living
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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Brookdale Senior Living insiders own 1.9% of the company, worth about US$22m. 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 Brookdale Senior Living Insiders?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But we don’t feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Brookdale Senior Living insiders are well aligned, and that they may think the share price is too low. 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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