Bombardier Executive Vice President of Aircraft Sales & Bombardier Defense Jean-Christophe Gallagher Sells 49% Of Holding

We wouldn't blame Bombardier Inc. (TSE:BBD.B) shareholders if they were a little worried about the fact that Jean-Christophe Gallagher, the Executive Vice President of Aircraft Sales & Bombardier Defense recently netted about CA$2.0m selling shares at an average price of CA$161. That's a big disposal, and it decreased their holding size by 49%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At Bombardier

In the last twelve months, the biggest single sale by an insider was when the President, Éric Martel, sold CA$12m worth of shares at a price of CA$105 per share. That means that even when the share price was below the current price of CA$161, 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. We note that the biggest single sale was only 29% of Éric Martel's holding.

Over the last year we saw more insider selling of Bombardier shares, than buying. 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!

Check out our latest analysis for Bombardier

I will like Bombardier better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Bombardier insiders own about CA$2.0b worth of shares (which is 12% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Bombardier Insider Transactions Indicate?

Insiders haven't bought Bombardier stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since Bombardier is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. 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 instance, we've identified 3 warning signs for Bombardier (2 are concerning) you should be aware of.

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 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.