8.5%of this Booz Allen Hamilton Holding Corporation (NYSE:BAH) insider's holdings were sold in the last year

By
Simply Wall St
Published
April 11, 2022
NYSE:BAH
Source: Shutterstock

Insiders were net sellers of Booz Allen Hamilton Holding Corporation's (NYSE:BAH ) stock during the past year. That is, insiders sold more stock than they bought.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Booz Allen Hamilton Holding

The Last 12 Months Of Insider Transactions At Booz Allen Hamilton Holding

Over the last year, we can see that the biggest insider sale was by the Independent Director, Gretchen McClain, for US$175k worth of shares, at about US$87.55 per share. That means that even when the share price was slightly below the current price of US$88.85, 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. It is worth noting that this sale was only 8.5% of Gretchen McClain's holding. Gretchen McClain was the only individual insider to sell 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!

insider-trading-volume
NYSE:BAH Insider Trading Volume April 11th 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

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Booz Allen Hamilton Holding insiders own 1.8% of the company, currently worth about US$218m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Booz Allen Hamilton Holding Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Booz Allen Hamilton Holding insider transactions don't fill us with confidence. 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. For example, Booz Allen Hamilton Holding has 2 warning signs (and 1 which is significant) 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, but not derivative transactions.

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