Lead Independent Director Edward Ludwig Sold A Bunch Of Shares In Boston Scientific

We wouldn't blame Boston Scientific Corporation (NYSE:BSX) shareholders if they were a little worried about the fact that Edward Ludwig, the Lead Independent Director recently netted about US$1.3m selling shares at an average price of US$105. That sale reduced their total holding by 33% which is hardly insignificant, but far from the worst we've seen.

See our latest analysis for Boston Scientific

The Last 12 Months Of Insider Transactions At Boston Scientific

In fact, the recent sale by Edward Ludwig was the biggest sale of Boston Scientific 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$106). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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 33% of Edward Ludwig's holding.

Insiders in Boston Scientific didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Boston Scientific better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership

Many investors like to check how much of a company is owned by 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. It's great to see that Boston Scientific insiders own 0.2% of the company, worth about US$291m. 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 Boston Scientific Insiders?

Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. But since Boston Scientific is profitable and growing, we're not too worried by this. 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. At Simply Wall St, we found 2 warning signs for Boston Scientific that deserve your attention before buying any shares.

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 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.