Yahoo Finance Best Buy Co., Inc. (NYSE:BBY) insider upped their holding by 1.1% earlier this year
Viewing insider transactions for Best Buy Co., Inc.'s (NYSE:BBY ) over the last year, we see that insiders were net buyers. This means that a larger number of shares were purchased by insiders in relation to shares sold.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Best Buy
Best Buy Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Founder & Chairman Emeritus Richard Schulze for US$20m worth of shares, at about US$80.30 per share. That means that even when the share price was higher than US$73.53 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Richard Schulze.
The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insiders At Best Buy Have Sold Stock Recently
The last three months saw significant insider selling at Best Buy. In total, insiders sold US$5.9m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.
Does Best Buy Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Best Buy insiders own about US$1.8b worth of shares (which is 11% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Best Buy Insiders?
Insiders sold Best Buy shares recently, but they didn't buy any. In contrast, they appear keener if you look at the last twelve months. We are also comforted by the high levels of insider ownership. So we're happy to look past recent trading. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Best Buy. At Simply Wall St, we've found that Best Buy has 3 warning signs (1 is a bit unpleasant!) that deserve your attention before going any further with your analysis.
Of course Best Buy may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.
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