CFO & Executive Director Of Balfour Beatty Sold 35% Of Their Shares

Some Balfour Beatty plc (LON:BBY) shareholders may be a little concerned to see that the CFO & Executive Director, Philip Harrison, recently sold a substantial UK£1.5m worth of stock at a price of UK£4.09 per share. That's a big disposal, and it decreased their holding size by 35%, which is notable but not too bad.

Check out our latest analysis for Balfour Beatty

The Last 12 Months Of Insider Transactions At Balfour Beatty

Notably, that recent sale by Philip Harrison is the biggest insider sale of Balfour Beatty shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of UK£4.11. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 35% of Philip Harrison's holding.

The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Balfour Beatty 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

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 0.9% of Balfour Beatty shares, worth about UK£20m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Balfour Beatty Tell Us?

An insider sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Balfour Beatty. In terms of investment risks, we've identified 2 warning signs with Balfour Beatty and understanding these should be part of your investment process.

But note: Balfour Beatty 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.