Badger Meter Chairman Kenneth Bockhorst Sells 31% Of Holding

Some Badger Meter, Inc. (NYSE:BMI) shareholders may be a little concerned to see that the Chairman, Kenneth Bockhorst, recently sold a substantial US$3.4m worth of stock at a price of US$210 per share. That sale reduced their total holding by 31% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for Badger Meter

The Last 12 Months Of Insider Transactions At Badger Meter

Notably, that recent sale by Kenneth Bockhorst is the biggest insider sale of Badger Meter shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$212. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 31% of Kenneth Bockhorst's stake.

In the last year Badger Meter insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

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. Badger Meter insiders own about US$36m worth of shares. That equates to 0.6% of the company. 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 Do The Badger Meter Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that Badger Meter is growing earnings. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! 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. At Simply Wall St, we found 1 warning sign for Badger Meter that deserve your attention before buying any shares.

But note: Badger Meter 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.