In the last year, many Boston Properties, Inc. (NYSE:BXP) insiders sold a substantial stake in the company which may have sparked shareholders’ attention. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, if numerous insiders are selling, shareholders should investigate more.
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.
See our latest analysis for Boston Properties
The Last 12 Months Of Insider Transactions At Boston Properties
Over the last year, we can see that the biggest insider sale was by the Senior Executive Vice President, Raymond Ritchey, for US$5.1m worth of shares, at about US$114 per share. That means that an insider was selling shares at slightly below the current price (US$120). 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don’t know for sure what they think of the stock price. This single sale was 100% of Raymond Ritchey’s stake.
In the last year Boston Properties insiders didn’t buy any company stock. 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!
NYSE:BXP Insider Trading Volume February 25th 2022
I will like Boston Properties better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership of Boston Properties
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 Boston Properties insiders own 0.2% of the company, worth about US$37m. 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 Boston Properties Insiders?
It doesn’t really mean much that no insider has traded Boston Properties shares in the last quarter. We don’t take much encouragement from the transactions by Boston Properties insiders. But we do like the fact that insiders own a fair chunk of the company. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Boston Properties. Be aware that Boston Properties is showing 2 warning signs in our investment analysis, and 1 of those is significant…
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.
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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.