Yahoo Finance Are Insiders Selling Black Knight, Inc. (NYSE:BKI) Stock?
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We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Black Knight, Inc. (NYSE:BKI), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
See our latest analysis for Black Knight
Black Knight Insider Transactions Over The Last Year
Executive Chairman William Foley made the biggest insider sale in the last 12 months. That single transaction was for US$50m worth of shares at a price of US$51.68 each. So what is clear is that an insider saw fit to sell at around the current price of US$50.06. They could have a variety of motivations for selling, but it’s still not particularly encouraging to see. We generally tread carefully if insiders have been selling on market, even if they sold slightly above the current price.
All up, insiders sold more shares in Black Knight than they bought, over the last year. They sold for an average price of about US$50.63. It’s not too encouraging to see that insiders have sold at below the current price. Since insiders sell for many reasons, we wouldn’t put too much weight on it. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders at Black Knight Have Bought Stock Recently
Over the last three months, we’ve seen significant insider buying at Black Knight. We can see that Anthony Jabbour paid US$1m for shares in the company. No-one sold. That shows some optimism about the company’s future.
Does Black Knight Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Black Knight insiders own 4.6% of the company, currently worth about US$344m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Black Knight Tell Us?
It is good to see recent insider purchase. But we can’t say the same for the transactions over the last 12 months. Overall, we’d prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, Black Knight insiders are reasonably well aligned, and optimistic for the future. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Black Knight.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
