BlackRock, Inc. (NYSE:BLK) shareholders (or potential shareholders) will be happy to see that the Independent Director, William Ford, recently bought a whopping US$2.1m worth of stock, at a price of US$688. Not only is that a big swing, but it increased their holding size by 28%, which is definitely great to see.
BlackRock Insider Transactions Over The Last Year
The Chairman & CEO, Laurence Fink, made the biggest insider sale in the last 12 months. That single transaction was for US$30m worth of shares at a price of US$870 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$702). So it may not shed much light on insider confidence at current levels.
In total, BlackRock insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like BlackRock better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does BlackRock Boast High 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. BlackRock insiders own about US$1.1b worth of shares (which is 1.1% of the company). 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?
The recent insider purchase is heartening. But we can't say the same for the transactions over the last 12 months. The high levels of insider ownership, and the recent buying by an insider suggests they are well aligned and optimistic. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing BlackRock. Every company has risks, and we've spotted 2 warning signs for BlackRock you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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