Don't Ignore The Insider Selling In Brunswick

We wouldn't blame Brunswick Corporation (NYSE:BC) shareholders if they were a little worried about the fact that Ryan Gwillim, the Executive VP recently netted about US$537k selling shares at an average price of US$65.09. That sale reduced their total holding by 15% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for Brunswick

Brunswick Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the CEO & Director, David Foulkes, sold US$3.0m worth of shares at a price of US$87.11 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$64.69. So it may not shed much light on insider confidence at current levels.

In total, Brunswick insiders sold more than they bought over the last year. 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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Insider Ownership

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. Insiders own 1.0% of Brunswick shares, worth about US$45m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Brunswick Tell Us?

The stark truth for Brunswick is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! While it's good to be aware of 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. Our analysis shows 4 warning signs for Brunswick (1 is a bit unpleasant!) and we strongly recommend you look at them before investing.

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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.