Blue Bird Insiders Sell US$1.7m Of Stock, Possibly Signalling Caution

In the last year, many Blue Bird Corporation (NASDAQ:BLBD) insiders sold a substantial stake in the company which may have sparked shareholders' attention. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

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.

View our latest analysis for Blue Bird

The Last 12 Months Of Insider Transactions At Blue Bird

The insider, Gurminder Bedi, made the biggest insider sale in the last 12 months. That single transaction was for US$914k worth of shares at a price of US$48.48 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$41.77. So it is hard to draw any strong conclusion from it.

Over the last year we saw more insider selling of Blue Bird shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insiders At Blue Bird Have Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at Blue Bird. Director Daniel Thau bought US$27k worth of shares in that time. It's great to see that insiders are only buying, not selling. However, in this case the amount invested recently is quite small.

Insider Ownership Of Blue Bird

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Blue Bird insiders own about US$7.6m worth of shares (which is 0.6% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Blue Bird Tell Us?

Our data shows a little insider buying, but no selling, in the last three months. The net investment is not enough to encourage us much. The insider transactions at Blue Bird are not inspiring us to buy. And usually insiders own more stock in the company, according to our data. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Blue Bird.

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 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.