Ballard Power Systems Inc. (TSE:BLDP) Insiders Have Been Selling

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It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Ballard Power Systems Inc. (TSE:BLDP).

What Is Insider Buying?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'

View our latest analysis for Ballard Power Systems

Ballard Power Systems Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the CFO & VP, Anthony Guglielmin, for CA$268k worth of shares, at about CA$5.37 per share. That means that an insider was selling shares at around the current price of CA$4.54. While we don't usually like to see insider selling, it's more concerning if the sales take price at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

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

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insiders at Ballard Power Systems Have Sold Stock Recently

We have seen a bit of insider selling at Ballard Power Systems, over the last three months. In total, insiders sold US$51k worth of shares in that time. But Vice President of Operations Sarbjot Sidhu spent US$20k on buying, too. While it's not great to see insider selling, the net amount sold isn't enough for us to want to read anything into it.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Based on our data, Ballard Power Systems insiders have about 0.3% of the stock, worth approximately CA$3.2m. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Ballard Power Systems Tell Us?

Insider selling has just outweighed insider buying in the last three months. But the net divestment is not enough to concern us at all. Recent insider selling makes us a little nervous, in light of the broader picture of Ballard Power Systems insider transactions. And we're not picking up on high enough insider ownership to give us any comfort. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Ballard Power Systems.

Of course Ballard Power Systems may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.