Insider Spends US$358k Buying More Shares In Brookdale Senior Living
Potential Brookdale Senior Living Inc. (NYSE:BKD) shareholders may wish to note that the Independent Director, Christopher Winkle, recently bought US$358k worth of stock, paying US$8.95 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 594%.
Brookdale Senior Living Insider Transactions Over The Last Year
In fact, the recent purchase by Christopher Winkle was the biggest purchase of Brookdale Senior Living shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$9.17 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Brookdale Senior Living share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was Christopher Winkle.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
View our latest analysis for Brookdale Senior Living
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insider Ownership
Many investors like to check how much of a company is owned by 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. Brookdale Senior Living insiders own about US$29m worth of shares. That equates to 1.4% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Brookdale Senior Living Insider Transactions Indicate?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Brookdale Senior Living insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 1 warning sign for Brookdale Senior Living you should be aware of.
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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