Have Bright Horizons Family Solutions Insiders Been Selling Stock?

We wouldn't blame Bright Horizons Family Solutions Inc. (NYSE:BFAM) shareholders if they were a little worried about the fact that Stephen Kramer, the CEO, President & Director recently netted about US$1.3m selling shares at an average price of US$126. That sale reduced their total holding by 13% which is hardly insignificant, but far from the worst we've seen.

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The Last 12 Months Of Insider Transactions At Bright Horizons Family Solutions

Notably, that recent sale by CEO, President & Director Stephen Kramer was not the only time they sold Bright Horizons Family Solutions shares this year. They previously made an even bigger sale of -US$1.4m worth of shares at a price of US$140 per share. That means that an insider was selling shares at around the current price of US$130. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Bright Horizons Family Solutions insiders didn't buy any shares 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!

Check out our latest analysis for Bright Horizons Family Solutions

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Insider Ownership Of Bright Horizons Family Solutions

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. Insiders own 0.8% of Bright Horizons Family Solutions shares, worth about US$58m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Bright Horizons Family Solutions Insiders?

Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. But since Bright Horizons Family Solutions is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 2 warning signs for Bright Horizons Family Solutions that deserve your attention before buying any shares.

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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.