This Insider Has Just Sold Shares In Burford Capital

We wouldn't blame Burford Capital Limited (NYSE:BUR) shareholders if they were a little worried about the fact that Christopher Bogart, the Co-Founder recently netted about US$3.1m selling shares at an average price of US$14.60. However, that sale only accounted for 2.3% of their holding, so arguably it doesn't say much about their conviction.

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Burford Capital Insider Transactions Over The Last Year

In fact, the recent sale by Christopher Bogart was the biggest sale of Burford Capital shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$13.90. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Burford Capital

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Does Burford Capital Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Burford Capital insiders own 8.8% of the company, worth about US$277m. 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 Does This Data Suggest About Burford Capital Insiders?

An insider sold Burford Capital shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. Case in point: We've spotted 1 warning sign for Burford Capital you should be aware of.

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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.