BlackLine Insiders Placed Bullish Bets Worth US$593.3k

Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of BlackLine, Inc. (NASDAQ:BL), it sends a favourable message to the company's shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for BlackLine

BlackLine Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Co-CEO & Chairman of the Board Owen Ryan bought US$348k worth of shares at a price of US$46.11 per share. That means that an insider was happy to buy shares at around the current price of US$48.30. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the BlackLine insiders decided to buy shares at close to current prices.

In the last twelve months insiders purchased 12.55k shares for US$593k. But they sold 8.60k shares for US$480k. In total, BlackLine insiders bought more than they sold over the last year. 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!

BlackLine is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of BlackLine

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that BlackLine insiders own 7.7% of the company, worth about US$233m. 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 Do The BlackLine Insider Transactions Indicate?

The fact that there have been no BlackLine insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like BlackLine insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing BlackLine. Every company has risks, and we've spotted 2 warning signs for BlackLine (of which 1 is significant!) you should know about.

But note: BlackLine 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 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.