Yahoo Finance Bank of America Corporation's (NYSE:BAC)) market cap declines to US$246b but insiders who sold US$6.0m stock were able to hedge their losses
By selling US$6.0m worth of Bank of America Corporation (NYSE:BAC) stock at an average sell price of US$45.76 over the last year, insiders seemed to have made the most of their holdings. The company’s market cap plunged by US$29b after price dropped by 11% last week but insiders were able to limit their loss to an extent.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Bank of America
Bank of America Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the insider, Dean Athanasia, sold US$5.0m worth of shares at a price of US$45.77 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 silver lining is that this sell-down took place above the latest price (US$30.57). So it may not shed much light on insider confidence at current levels.
Bank of America insiders didn't buy any shares over 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership Of Bank of America
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Bank of America insiders own about US$424m worth of shares (which is 0.2% of the company). 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 Bank of America Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Bank of America shares in the last quarter. 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. 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. In terms of investment risks, we've identified 1 warning sign with Bank of America and understanding it should be part of your investment process.
Of course Bank of America may not be the best stock to buy. So you may wish to see this free collection of high quality 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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