This Insider Has Just Sold Shares In BlackRock

We wouldn't blame BlackRock, Inc. (NYSE:BLK) shareholders if they were a little worried about the fact that Laurence Fink, the Chairman & CEO recently netted about US$25m selling shares at an average price of US$810. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 7.0%.

Check out our latest analysis for BlackRock

BlackRock Insider Transactions Over The Last Year

In fact, the recent sale by Laurence Fink was the biggest sale of BlackRock shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (US$815). 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 7.0%of Laurence Fink's holding.

In the last year BlackRock insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. BlackRock insiders own about US$1.2b worth of shares (which is 1.0% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About BlackRock Insiders?

Insiders sold BlackRock shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But it is good to see that BlackRock is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of BlackRock.

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 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.