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We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So we’ll take a look at whether insiders have been buying or selling shares in Beasley Broadcast Group, Inc. (NASDAQ:BBGI).
What Is Insider Buying?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
We don’t think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
See our latest analysis for Beasley Broadcast Group
Beasley Broadcast Group Insider Transactions Over The Last Year
The , Cristina Bordes, made the biggest insider sale in the last 12 months. That single transaction was for US$3.5m worth of shares at a price of US$7.05 each. While we don’t usually like to see insider selling, it’s more concerning if the sales take price at a lower price. The silver lining is that this sell-down took place above the latest price (US$3.20). So it may not shed much light on insider confidence at current levels.
In the last twelve months insiders purchased 25250 shares for US$112k. But insiders sold 661k shares worth US$4.7m. All up, insiders sold more shares in Beasley Broadcast Group than they bought, over the last year. The average sell price was around US$7.05. We are not joyful about insider selling. However, we do note that the average sale price was significantly higher than the current share price (which is US$3.20). You can see the insider transactions (by 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!
Beasley Broadcast Group Insiders Bought Stock Recently
Over the last three months, we’ve seen significant insider buying at Beasley Broadcast Group. In total, insiders bought US$77k worth of shares in that time, and we didn’t record any sales whatsoever. That shows some optimism about the company’s future.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. It’s great to see that Beasley Broadcast Group insiders own 66% of the company, worth about US$59m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Beasley Broadcast Group Tell Us?
It is good to see recent purchasing. However, the longer term transactions are not so encouraging. The high levels of insider ownership, and the recent buying by some insiders, suggests they are well aligned and optimistic. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Beasley Broadcast Group.
But note: Beasley Broadcast Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.