Yahoo Finance Trade Alert: Sai Ho At BlackBerry Limited (TSE:BB), Has Just Spent US$53k Buying 5.5% More Shares
Whilst it may not be a huge deal, we thought it was good to see that Sai Ho, who is a company insider, recently bought CA$53k worth of stock, for CA$5.31 per share. However, it only increased shares held by 5.5%, and it wasn't a huge purchase by absolute value, either.
See our latest analysis for BlackBerry
BlackBerry Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Chief Revenue Officer Steven Capelli bought CA$499k worth of shares at a price of CA$7.13 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$5.25). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Happily, we note that in the last year insiders paid CA$924k for 140.00k shares. But insiders sold 14000 shares worth CA$111k. In total, BlackBerry insiders bought more than they sold over the last year. 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!
BlackBerry is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does BlackBerry Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 1.4% of BlackBerry shares, worth about CA$40m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About BlackBerry Insiders?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of BlackBerry we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing BlackBerry. While conducting our analysis, we found that BlackBerry has 3 warning signs and it would be unwise to ignore them.
But note: BlackBerry 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.
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.
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. Thank you for reading.
