Have Insiders Sold BlackRock Shares Recently?

Some BlackRock, Inc. (NYSE:BLK) shareholders may be a little concerned to see that insider Rachel Lord recently sold a substantial US$14m worth of stock at a price of US$1,165 per share. That diminished their holding by a very significant 72%, which arguably implies a strong desire to reallocate capital.

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The Last 12 Months Of Insider Transactions At BlackRock

In the last twelve months, the biggest single sale by an insider was when the Founder, Laurence Fink, sold US$30m worth of shares at a price of US$1,130 per share. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$1,131. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 9.6% of Laurence Fink's holding.

BlackRock 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for BlackRock

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Insider Ownership Of BlackRock

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that BlackRock insiders own 1.9% of the company, worth about US$3.4b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The BlackRock Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that BlackRock has 1 warning sign and it would be unwise to ignore it.

But note: BlackRock may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 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.