Yahoo Finance Have Bristol-Myers Squibb Company (NYSE:BMY) Insiders Been Selling Their Stock?
We wouldn't blame Bristol-Myers Squibb Company (NYSE:BMY) shareholders if they were a little worried about the fact that John Elicker, the Senior Vice President of Corporate Affairs & Investor Relations recently netted about US$850k selling shares at an average price of US$56.66. That sale reduced their total holding by 17% which is hardly insignificant, but far from the worst we've seen.
See our latest analysis for Bristol-Myers Squibb
The Last 12 Months Of Insider Transactions At Bristol-Myers Squibb
In the last twelve months, the biggest single sale by an insider was when the Senior VP and President of Global Product Development & Supply, Louis Schmukler, sold US$1.4m worth of shares at a price of US$56.56 per share. That means that an insider was selling shares at below the current price (US$57.58). 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 44% of Louis Schmukler's stake.
In the last twelve months insiders purchased 16000 shares for US$728k. But insiders sold 43065 shares worth US$2.4m. Over the last year we saw more insider selling of Bristol-Myers Squibb shares, than buying. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Bristol-Myers Squibb 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 Bristol-Myers Squibb
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Bristol-Myers Squibb insiders own about US$104m worth of shares (which is 0.1% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Bristol-Myers Squibb Tell Us?
Insiders sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that Bristol-Myers Squibb is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course Bristol-Myers Squibb 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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. Thank you for reading.
