Have Insiders Sold Bowman Consulting Group Ltd. (NASDAQ:BWMN) Shares Recently?

By
Simply Wall St
Published
February 18, 2022
NasdaqGM:BWMN
Source: Shutterstock

We wouldn't blame Bowman Consulting Group Ltd. (NASDAQ:BWMN) shareholders if they were a little worried about the fact that Gary Bowman, the President recently netted about US$2.4m selling shares at an average price of US$16.00. However, that sale only accounted for 5.2% of their holding, so arguably it doesn't say much about their conviction.

View our latest analysis for Bowman Consulting Group

The Last 12 Months Of Insider Transactions At Bowman Consulting Group

Notably, that recent sale by Gary Bowman is the biggest insider sale of Bowman Consulting Group shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of US$16.96. 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. It is worth noting that this sale was only 5.2% of Gary Bowman's holding.

Happily, we note that in the last year insiders paid US$28k for 2.00k shares. But insiders sold 150.00k shares worth US$2.4m. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NasdaqGM:BWMN Insider Trading Volume February 18th 2022

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Bowman Consulting Group

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Bowman Consulting Group insiders own about US$80m worth of shares. That equates to 38% of the company. 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 Bowman Consulting Group Insider Transactions Indicate?

An insider sold Bowman Consulting Group shares recently, but they didn't buy any. 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! While we like knowing 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. While conducting our analysis, we found that Bowman Consulting Group has 3 warning signs and it would be unwise to ignore these.

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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