Brookfield Insiders Added US$43.7m Of Stock To Their Holdings

Over the last year, a good number of insiders have significantly increased their holdings in Brookfield Corporation (TSE:BN). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Brookfield

The Last 12 Months Of Insider Transactions At Brookfield

The insider Samuel J. Pollock made the biggest insider purchase in the last 12 months. That single transaction was for CA$12m worth of shares at a price of CA$61.08 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$79.44. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

In the last twelve months insiders purchased 757.25k shares for CA$44m. On the other hand they divested 433.53k shares, for CA$26m. In total, Brookfield insiders bought more than they sold 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!

Brookfield is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Brookfield Insiders Are Selling The Stock

The last quarter saw substantial insider selling of Brookfield shares. Specifically, insiders ditched CA$18m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Brookfield insiders own about CA$14b worth of shares (which is 11% 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 Brookfield Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. But we take heart from prior transactions. And insider ownership remains quite considerable. So the recent selling doesn't worry us. 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. For example, Brookfield has 4 warning signs (and 2 which are a bit unpleasant) we think you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.