More money in the bank for insiders who divested US$3.0m worth of Ballard Power Systems Inc. (TSE:BLDP) shares last year

By
Simply Wall St
Published
September 03, 2021
TSX:BLDP
Source: Shutterstock

Despite the fact that Ballard Power Systems Inc. (TSE:BLDP) stock rose 3.5% last week, insiders who sold US$3.0m worth of stock in the previous 12 months are likely to be better off. Selling at an average price of US$25.05, which is higher than the current price, may have been the wisest decision for these insiders as their investment would have been worth less now than when they sold.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

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 CEO, President & Non-Independent Director, R. MacEwen, for CA$1.3m worth of shares, at about CA$27.35 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (CA$21.16). So it may not shed much light on insider confidence at current levels.

All up, insiders sold more shares in Ballard Power Systems than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
TSX:BLDP Insider Trading Volume September 3rd 2021

I will like Ballard Power Systems better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Have Ballard Power Systems Insiders Traded Recently?

Over the last three months, we've seen a bit of insider buying at Ballard Power Systems. insider Jay Murray shelled out CA$10k for shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Insider Ownership of Ballard Power Systems

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. Our data indicates that Ballard Power Systems insiders own about CA$11m worth of shares (which is 0.2% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

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

We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. Our analysis of Ballard Power Systems insider transactions leaves us cautious. But we do like the fact that insiders own a fair chunk of the company. 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. At Simply Wall St, we found 2 warning signs for Ballard Power Systems that deserve your attention before buying any shares.

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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