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Quite a few Becton, Dickinson and Company (NYSE:BDX) insiders sold their shares over the past year, which may be a cause for concern. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Becton Dickinson
Becton Dickinson Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Member of Scientific Advisory Board & Independent Director, Claire Fraser-Liggett, for US$229k worth of shares, at about US$272 per share. So what is clear is that an insider saw fit to sell at around the current price of US$254. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
Becton Dickinson insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.1% of Becton Dickinson shares, worth about US$100m. 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 Becton Dickinson Insider Transactions Indicate?
The fact that there have been no Becton Dickinson insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by Becton Dickinson insiders. The modest level of insider ownership is, at least, some comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Becton Dickinson. In terms of investment risks, we've identified 1 warning sign with Becton Dickinson and understanding it should be part of your investment process.