Have Blue Bird Insiders Been Selling Stock?
Some Blue Bird Corporation (NASDAQ:BLBD) shareholders may be a little concerned to see that the Director, Philip Horlock, recently sold a substantial US$775k worth of stock at a price of US$50.42 per share. However, that sale only accounted for 6.4% of their holding, so arguably it doesn't say much about their conviction.
The Last 12 Months Of Insider Transactions At Blue Bird
In fact, the recent sale by Director Philip Horlock was not their only sale of Blue Bird shares this year. They previously made an even bigger sale of -US$1.8m worth of shares at a price of US$60.00 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. The silver lining is that this sell-down took place above the latest price (US$51.75). So it may not shed much light on insider confidence at current levels.
All up, insiders sold more shares in Blue Bird than they bought, over the last year. The average sell price was around US$56.64. We don't gain confidence from insider selling below the recent share price. Since insiders sell for many reasons, we wouldn't put too much weight on it. 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!
See our latest analysis for Blue Bird
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Does Blue Bird Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. 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 1.1% of Blue Bird shares, worth about US$18m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Blue Bird Tell Us?
Unfortunately, there has been more insider selling of Blue Bird stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Blue Bird is growing earnings. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! 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. Every company has risks, and we've spotted 1 warning sign for Blue Bird you should know about.
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.
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.