Yahoo Finance As Bank of America Corporation's (NYSE:BAC)) market cap dropped by US$41b, insiders who sold US$831k worth of stock were able to offset their losses
Over the past year, insiders sold US$831k worth of Bank of America Corporation (NYSE:BAC) stock at an average price of US$45.12 per share allowing them to get the most out of their money. The company's market valuation decreased by US$41b after the stock price dropped 14% over the past week, but insiders were spared from painful losses.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Bank of America
Bank of America Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the insider, Andrew Sieg, for US$831k worth of shares, at about US$45.12 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$32.74. So it may not tell us anything about how insiders feel about the current share price. Andrew Sieg was the only individual insider to sell shares in the last twelve months.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Bank of America
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Bank of America insiders own 0.2% of the company, currently worth about US$446m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Bank of America Insiders?
The fact that there have been no Bank of America insider transactions recently certainly doesn't bother us. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Bank of America insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Bank of America. In terms of investment risks, we've identified 1 warning sign with Bank of America and understanding this should be part of your investment process.
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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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.
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