We wouldn't blame Boston Omaha Corporation (NYSE:BOC) shareholders if they were a little worried about the fact that Brendan Keating, the Director recently netted about US$1.4m selling shares at an average price of US$13.56. That diminished their holding by a very significant 64%, which arguably implies a strong desire to reallocate capital.
Boston Omaha Insider Transactions Over The Last Year
Notably, that recent sale by Brendan Keating is the biggest insider sale of Boston Omaha shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$13.67. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was 64% of Brendan Keating's holding.
Over the last year, we can see that insiders have bought 78.24k shares worth US$1.0m. But insiders sold 100.99k shares worth US$1.4m. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Check out our latest analysis for Boston Omaha
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).
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 3.5% of Boston Omaha shares, worth about US$15m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Boston Omaha Insider Transactions Indicate?
An insider hasn't bought Boston Omaha stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Boston Omaha. When we did our research, we found 2 warning signs for Boston Omaha (1 can't be ignored!) that we believe deserve your full attention.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.