70% Of This BranchOut Food Insider's Holdings Were Sold
Insiders were net sellers of BranchOut Food Inc.'s (NASDAQ:BOF ) stock during the past year. That is, insiders sold more stock than they bought.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At BranchOut Food
The insider, Daniel Kaufman, made the biggest insider sale in the last 12 months. That single transaction was for US$3.6m worth of shares at a price of US$3.06 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$3.46. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was 70% of Daniel Kaufman's holding. Daniel Kaufman was the only individual insider to sell shares in the last twelve months.
Daniel Kaufman sold a total of 1.71m shares over the year at an average price of US$3.18. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
See our latest analysis for BranchOut Food
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
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. We usually like to see fairly high levels of insider ownership. Our data indicates that BranchOut Food insiders own about US$7.7m worth of shares (which is 14% of the company). Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The BranchOut Food Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. The insider transactions at BranchOut Food are not inspiring us to buy. And usually insiders own more stock in the company, according to our data. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 3 warning signs for BranchOut Food that deserve your attention before buying any shares.
Of course BranchOut Food may not be the best stock to buy. So you may wish to see this free collection of high quality 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.