Yahoo Finance Managing Partner of Brookfield James Flatt Buys 2.0% More Shares \
Those following along with Brookfield Corporation (TSE:BN) will no doubt be intrigued by the recent purchase of shares by James Flatt, Managing Partner of the company, who spent a stonking CA$53m on stock at an average price of CA$42.06. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 2.0%.
See our latest analysis for Brookfield
The Last 12 Months Of Insider Transactions At Brookfield
In fact, the recent purchase by James Flatt was the biggest purchase of Brookfield shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$41.63). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months insiders purchased 1.41m shares for CA$60m. But insiders sold 607.17k shares worth CA$36m. In total, Brookfield insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Brookfield is not the only stock that insiders are buying. 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
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. Brookfield insiders own 11% of the company, currently worth about CA$7.3b 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.
So What Do The Brookfield Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Brookfield. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Brookfield. At Simply Wall St, we've found that Brookfield has 4 warning signs (2 make us uncomfortable!) that deserve your attention before going any further with your analysis.
But note: Brookfield 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, but not derivative transactions.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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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