Some BlackRock, Inc. (NYSE:BLK) shareholders may be a little concerned to see that the Founder, Laurence Fink, recently sold a substantial US$2.1m worth of stock at a price of US$1,081 per share. However, that sale only accounted for 0.8% of their holding, so arguably it doesn't say much about their conviction.
The Last 12 Months Of Insider Transactions At BlackRock
Notably, that recent sale by Founder Laurence Fink was not the only time they sold BlackRock shares this year. Earlier in the year, they fetched US$1,052 per share in a -US$36m sale. That means that even when the share price was slightly below the current price of US$1,072, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 13% of Laurence Fink's holding.
In the last year BlackRock insiders didn't buy any company stock. 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!
See our latest analysis for BlackRock
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Does BlackRock 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. I reckon it's a good sign if insiders own a significant number of shares in the company. BlackRock insiders own 1.8% of the company, currently worth about US$3.2b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At BlackRock Tell Us?
Insiders sold BlackRock shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. On the plus side, BlackRock makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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 BlackRock and we suggest you have a look.
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.
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.