Investors may wish to note that the Senior Vice President of Acquisitions of Broadstone Net Lease, Inc., Roderick Pickney, recently netted US$62k from selling stock, receiving an average price of US$20.76. However we note that the sale only shrunk their holding by 6.3%.
Check out our latest analysis for Broadstone Net Lease
The Last 12 Months Of Insider Transactions At Broadstone Net Lease
In fact, the recent sale by Roderick Pickney was the biggest sale of Broadstone Net Lease shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was slightly below the current price of US$21.08, an insider wanted to cash in some shares. 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. However, while insider selling is sometimes discouraging, it’s only a weak signal. It is worth noting that this sale was only 6.3% of Roderick Pickney’s holding.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
NYSE:BNL Insider Trading Volume May 20th 2021
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of Broadstone Net Lease
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 Broadstone Net Lease insiders own 2.3% of the company, worth about US$77m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Broadstone Net Lease Insider Transactions Indicate?
An insider sold stock recently, but they haven’t been buying. And even if we look at the last year, we didn’t see any purchases. Insiders own shares, but we’re still pretty cautious, given the history of sales. We’re in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. Be aware that Broadstone Net Lease is showing 4 warning signs in our investment analysis, and 1 of those is potentially serious…
But note: Broadstone Net Lease may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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. 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.
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