Black Knight, Inc. (NYSE:BKI) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 4.1% decline in the stock price. After accounting for the recent loss, the US$2.2m worth of shares they purchased is now worth US$2.4m, suggesting a good return on their investment.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Black Knight
Over the last year, we can see that the biggest insider sale was by the President, Joseph Nackashi, for US$1.0m worth of shares, at about US$75.79 per share. That means that even when the share price was slightly below the current price of US$76.20, an insider wanted to cash in some shares. 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. 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 5.2% of Joseph Nackashi's holding.
Happily, we note that in the last year insiders paid US$2.2m for 30.90k shares. But insiders sold 17.40k shares worth US$1.3m. Overall, Black Knight insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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 Black Knight Boast High 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. Black Knight insiders own about US$389m worth of shares (which is 3.3% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Black Knight Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Black Knight insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Black Knight. At Simply Wall St, we found 1 warning sign for Black Knight 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, but not derivative transactions.
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.