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The fact that multiple Blackstone Inc. (NYSE:BX) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. 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 insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Blackstone
The Last 12 Months Of Insider Transactions At Blackstone
The Chief Legal Officer, John Finley, made the biggest insider sale in the last 12 months. That single transaction was for US$7.4m worth of shares at a price of US$176 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$191. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 29% of John Finley's stake.
Happily, we note that in the last year insiders paid US$444k for 3.46k shares. But insiders sold 145.74k shares worth US$21m. In total, Blackstone insiders sold more than they bought over the last year. 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!
I will like Blackstone better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Blackstone Insiders Are Selling The Stock
There was substantially more insider selling, than buying, of Blackstone shares over the last three months. In that time, Chief Legal Officer John Finley dumped US$7.4m worth of shares. Meanwhile insider Ruth Porat bought US$37k worth. Because the selling vastly outweighs the buying, we'd say this is a somewhat bearish sign.
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. Blackstone insiders own 0.2% of the company, currently worth about US$549m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.