Independent Director Of Blackline Safety Sold 56% Of Their Shares

Anyone interested in Blackline Safety Corp. (TSE:BLN) should probably be aware that the Independent Director, Robert Herdman, recently divested CA$181k worth of shares in the company, at an average price of CA$7.24 each. Equally important, that sale actually reduced their holding by a full 56% which hardly makes us feel bullish about the stock.

Check out our latest analysis for Blackline Safety

Blackline Safety Insider Transactions Over The Last Year

In fact, the recent sale by Robert Herdman was the biggest sale of Blackline Safety shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of CA$7.45, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was 56% of Robert Herdman's holding.

In total, Blackline Safety insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Blackline Safety 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 Of Blackline Safety

Many investors like to check how much of a company is owned by 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. Insiders own 4.3% of Blackline Safety shares, worth about CA$28m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Blackline Safety Insider Transactions Indicate?

Unfortunately, there has been more insider selling of Blackline Safety stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Blackline Safety. To help with this, we've discovered 3 warning signs (1 is concerning!) that you ought to be aware of before buying any shares in Blackline Safety.

But note: Blackline Safety may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.