The recent price decline of 7.8% in The Boeing Company’s (NYSE:BA) stock may have disappointed insiders who bought US$1.1m worth of shares at an average price of US$209 in the past 12 months. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth US$664k, which is not what they expected.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Boeing
In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Chairman Lawrence Kellner bought US$1.0m worth of shares at a price of US$209 per share. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being US$121). It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Happily, we note that in the last year insiders paid US$1.1m for 5.48k shares. But insiders sold 990.00 shares worth US$220k. Overall, Boeing insiders were net buyers during the last year. 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!
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).
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Boeing insiders own about US$51m worth of shares. That equates to 0.07% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
There haven’t been any insider transactions in the last three months — that doesn’t mean much. On a brighter note, the transactions over the last year are encouraging. Overall we don’t see anything to make us think Boeing insiders are doubting the company, and they do own shares. While we like knowing what’s going on with the insider’s ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example – Boeing has 1 warning sign we think you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
Related Quotes
Overwhelming bearishness means stocks are reflecting "draconian earnings,” says David Baron of Baron Focused Growth.
PayPal Holdings, Inc.'s ( NASDAQ:PYPL ) price-to-earnings (or "P/E") ratio of 48.4x might make it look like a strong…
The recent 4.1% drop in General Electric Company's ( NYSE:GE ) stock could come as a blow to insiders who purchased…
Chinese smartphone maker Xiaomi Corp on Sunday said it was "disappointed" with an Indian order that froze $682 million of its assets and would continue to protect its interests. An Indian appellate authority on Friday confirmed an April order by India's federal financial crime fighting agency, the Enforcement Directorate, to seize 55.51 billion rupees, saying a probe found Xiaomi had made illegal remittances to foreign entities by passing them off as royalty payments.
To get a sense of who is truly in control of Bank of America Corporation ( NYSE:BAC ), it is important to understand…
The $5 billion merger deal had been announced last November but has been held up as it works through regulatory approvals. Rogers is one of Arizona's largest public companies with more than 3,500 global employees and annual revenue approaching $1 billion.
With its stock down 7.0% over the past month, it is easy to disregard Exxon Mobil (NYSE:XOM). However, stock prices are…
The Army fell about 15,000 soldiers — or 25% — short of its recruitment goal this year, officials confirmed Friday, despite a frantic effort to make up the widely expected gap in a year when all the military services struggled in a tight jobs market to find young people willing and fit to enlist. While the Army was the only service that didn't meet its target, all of the others had to dig deep into their pools of delayed entry applicants, which will put them behind as they begin the next recruiting year on Saturday. The Air Force usually has about 25%.
Buy and hold forever? Not always.
MOSCOW (Reuters) -Russian Deputy Prime Minister Alexander Novak said on Sunday that it was technically possible to restore the ruptured offshore infrastructure of the Nord Stream gas pipelines, TASS news agency reported. A total of four leaks were discovered last week on the Nord Stream 1 and 2 pipelines in the Baltic Sea near Denmark and Sweden, with a significant fall in gas pressure leading to the detection of the ruptures. Of course, there are technical possibilities to restore the infrastructure, it takes time and appropriate funds.
Mashinsky resigned as CEO last Tuesday; the company filed for chapter 11 bankruptcy protection in mid July.
The global research team at BofA Securities, led by Michael Hartnett, has navigated the curveballs thrown by 2022 far better than most.
Prime Minister Narendra Modi launched 5G services in India on Saturday, calling it a “step towards the new era.” Modi launched the much-awaited services that aim to provide seamless coverage, high data rate, less delay in internet connectivity and highly reliable communications in presence of India’s telecom leaders in New Delhi.
JERUSALEM (Reuters) -Israel gave its preliminary nod on Sunday to a draft U.S.-brokered deal demarcating a maritime border with Lebanon that may lead to profit-sharing in a disputed Mediterranean gas prospect. Hoping to defuse one source of conflict between the hostile countries and prod them toward accommodation, U.S. envoy Amos Hochstein last week submitted a new proposal that would pave the way for offshore energy exploration. As Beirut mulls the 10-page draft – details of which have been kept under wraps – the Iran-backed Hezbollah movement called it "a very important step" on Saturday while Parliament Speaker Nabih Berri, a powerful Hezbollah ally, deemed it "positive".
If you want to know who really controls Bristol-Myers Squibb Company ( NYSE:BMY ), then you'll have to look at the…
Tesla Inc's famously focused chief executive, Elon Musk, faced one question at the company's 'AI Day' event on Friday that momentarily stumped him. In an evening devoted to robots and computer technology, a questioner asked what the 51-year old would tell his younger self. The verbose executive, who is the world's richest person, stood quietly and thought.
There are countless reasons you might be looking to boost your bank account this month. Whatever the reason your personal finances need a little boost, it's a good time for it. The golden quarter is here, shining its lovely light on all things retail, and the seasonal worker season is kicking into gear.
Prime Minister Liz Truss’s tax breaks are supposed to get the UK economy out of the doldrums.
Peloton went from boom to bust seemingly overnight, and as buyout rumors swirl, one analyst is skeptical the beleaguered home fitness company could sell even if it wanted to.
Yes, not all were literally found in barns, but they’re of barn-find condition.