Read This Before Selling Boston Omaha Corporation (NASDAQ:BOMN) Shares

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Boston Omaha Corporation (NASDAQ:BOMN).

What Is Insider Selling?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.

We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

Check out our latest analysis for Boston Omaha

Boston Omaha Insider Transactions Over The Last Year

The Co-Chairperson Adam M. Peterson made the biggest insider purchase in the last 12 months. That single transaction was for US$150k worth of shares at a price of US$16.00 each. We do like to see buying, but this purchase was made at well below the current price of US$23.50. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Boston Omaha insiders may have bought shares in the last year, but they didn't sell any. 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!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Boston Omaha Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that Boston Omaha insiders own 2.4% of the company, worth about US$15m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Boston Omaha Insiders?

It doesn't really mean much that no insider has traded Boston Omaha shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in Boston Omaha and we see no evidence to suggest they are worried about the future. 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. While conducting our analysis, we found that Boston Omaha has 2 warning signs and it would be unwise to ignore these.

Of course Boston Omaha may not be the best stock to buy. So you may wish to see this free collection of high quality 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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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. 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.
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