Berry Up 10%, But Some Insiders Miss Out

Even though Berry Corporation (NASDAQ:BRY) stock gained 10% last week, insiders who sold US$211k worth of stock over the past year are probably better off. Selling at an average price of US$6.22, which is higher than the current price, may have been the wisest decision for these insiders as their investment would have been worth less now than when they sold.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Berry

Berry Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the CEO & Director, Fernando Araujo, for US$211k worth of shares, at about US$6.22 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$4.77. So it is hard to draw any strong conclusion from it. Fernando Araujo was the only individual insider to sell shares in the last twelve months.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership Of Berry

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. From our data, it seems that Berry insiders own 2.6% of the company, worth about US$9.0m. We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At Berry Tell Us?

It doesn't really mean much that no insider has traded Berry shares in the last quarter. We don't take much encouragement from the transactions by Berry insiders. And usually insiders own more stock in the company, according to our data. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Berry. For example, Berry has 3 warning signs (and 1 which can't be ignored) we think you should know about.

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.