Yahoo Finance Bristol-Myers Squibb Insiders Sold US$1.1m Of Shares Suggesting Hesitancy
Over the past year, many Bristol-Myers Squibb Company (NYSE:BMY) insiders sold a significant stake in the company which may have piqued investors' interest. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Bristol-Myers Squibb
The Last 12 Months Of Insider Transactions At Bristol-Myers Squibb
Over the last year, we can see that the biggest insider sale was by the insider, Ann M. Judge, for US$1.1m worth of shares, at about US$61.25 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. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$41.48. So it is hard to draw any strong conclusion from it.
Happily, we note that in the last year insiders paid US$673k for 13.57k shares. But insiders sold 18.72k shares worth US$1.1m. All up, insiders sold more shares in Bristol-Myers Squibb than they bought, over the last year. 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!
If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
Does Bristol-Myers Squibb 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. Insiders own 0.07% of Bristol-Myers Squibb shares, worth about US$60m. 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 Does This Data Suggest About Bristol-Myers Squibb Insiders?
The fact that there have been no Bristol-Myers Squibb insider transactions recently certainly doesn't bother us. Our analysis of Bristol-Myers Squibb insider transactions leaves us cautious. The modest level of insider ownership is, at least, some comfort. 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. You'd be interested to know, that we found 2 warning signs for Bristol-Myers Squibb and we suggest you have a look.
Of course Bristol-Myers Squibb 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 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.
