We wouldn't blame BlackLine, Inc. (NASDAQ:BL) shareholders if they were a little worried about the fact that Therese Tucker, the Founder recently netted about US$13m selling shares at an average price of US$85.85. However, that sale only accounted for 3.1% of their holding, so arguably it doesn't say much about their conviction.
The Last 12 Months Of Insider Transactions At BlackLine
The insider, Mario Spanicciati, made the biggest insider sale in the last 12 months. That single transaction was for US$19m worth of shares at a price of US$62.41 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$85.36. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 17% of Mario Spanicciati's holding.
Insiders in BlackLine didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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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. BlackLine insiders own about US$596m worth of shares (which is 12% of the company). 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 BlackLine Tell Us?
An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that BlackLine has 3 warning signs and it would be unwise to ignore these.
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, but not derivative transactions.
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