Who sold the shares of Blackbaud, Inc. (NASDAQ: BLKB)?
It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also many examples of a sharp drop in stock prices after insiders sell stocks. Shareholders may want to know if any insiders have bought or sold shares of Blackbaud, Inc. (NASDAQ: BLKB).
What is insider selling?
It is quite normal to see insiders of the company, such as members of the board of directors, trading in company shares from time to time. However, there are rules governing insider trading and certain information is required.
We would never suggest that investors base their decisions solely on what the directors of a company have done. But logic dictates that you pay attention to whether insiders are buying or selling stocks. For example, a Columbia University study found that “insiders are more likely to engage in open market purchases of their own company’s stocks when the company is about to reveal new deals with customers and suppliers.”
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Blackbaud Insider Transactions in the Last Year
President Michael Gianoni had the biggest insider sale in the past 12 months. This one-time transaction involved $ 5.0 million of shares priced at $ 71.88 each. This means that an insider was selling shares at around the current price of US $ 70.69. We generally don’t like Insider Selling, but the lower the selling price, the more it concerns us. In this case, the big sale took place at roughly the current price, so it’s not too bad (but it’s still not positive).
Last year, Blackbaud insiders did not buy any shares in the company. The chart below shows insider trading (by companies and individuals) over the past year. By clicking on the chart below, you can see the exact details of each insider trade!
If you like buying stocks that insiders buy rather than selling them, you might like this free list of companies. (Hint: some insiders bought them).
Does Blackbaud claim high insider ownership?
I like to look at the number of shares held by insiders in a company, to help inform my perspective on their alignment with insiders. I think it’s a good sign if there are insiders who own a significant number of shares in the company. It appears that Blackbaud insiders own 1.7% of the company, worth around US $ 58 million. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest an alignment between insiders and other shareholders.
So what does this data suggest about Blackbaud insiders?
There haven’t been any insider trading in the past three months – that doesn’t mean much. Still, insider trading at Blackbaud over the past 12 months is not very encouraging. The modest level of insider ownership is, at least, some comfort. In addition to knowing the current insider transactions, it is useful to identify the risks that Blackbaud faces. Our analysis shows 3 warning signs for Blackbaud (1 is worrying!) And we strongly recommend that you review them before investing.
If you would rather consult with another company – one with potentially superior finances – then don’t miss this free list of interesting companies, which have a high return on equity and low leverage.
For the purposes of this article, insiders are the people who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
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