Even if it’s not a huge purchase, we think it was good to see that Frank Bumstead, the Independent Director of Brookdale Senior Living Inc. (NYSE:BKD) recently shelled out US$63k to buy stock, at US$6.28 per share. That might not be a big purchase but it only increased their holding by 4.6%, and could be interpreted as a good sign.
Brookdale Senior Living Insider Transactions Over The Last Year
In fact, the recent purchase by Frank Bumstead was the biggest purchase of Brookdale Senior Living shares made by an insider individual in the last twelve months, according to our records. So it’s clear an insider wanted to buy, at around the current price, which is US$6.39. 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. Happily, the Brookdale Senior Living insiders decided to buy shares at close to current prices.
Brookdale Senior Living insiders may have bought shares in the last year, but they didn’t sell any. You can see the insider transactions (by 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
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. It appears that Brookdale Senior Living insiders own 1.9% of the company, worth about US$22m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Brookdale Senior Living Insiders?
It is good to see the recent insider purchase. And the longer term insider transactions also give 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. Of course, the future is what matters most. So if you are interested in Brookdale Senior Living, you should check out this free report on analyst forecasts for the company.
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, but not derivative transactions.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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