We’d be surprised if Boston Properties, Inc. (NYSE:BXP) shareholders haven’t noticed that the Senior VP, Frank Burt, recently sold US$246k worth of stock at US$123 per share. Equally important, that sale actually reduced their holding by a full 100% which hardly makes us feel bullish about the stock.
Check out our latest analysis for Boston Properties
Boston Properties Insider Transactions Over The Last Year
Notably, that recent sale by Frank Burt is the biggest insider sale of Boston Properties shares that we’ve seen in the last year. So it’s clear an insider wanted to take some cash off the table, even slightly below the current price of US$123. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent 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. We note that the biggest single sale was 100% of Frank Burt’s holding.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
NYSE:BXP Insider Trading Volume June 12th 2021
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Does Boston Properties Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.2% of Boston Properties shares, worth about US$40m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Boston Properties Insider Transactions Indicate?
An insider sold stock recently, but they haven’t been buying. And there weren’t any purchases to give us comfort, over the last year. Insider ownership isn’t particularly high, so this analysis makes us cautious about the company. We’re in no rush to buy! So while it’s helpful to know what insiders are doing in terms of buying or selling, it’s also helpful to know the risks that a particular company is facing. For instance, we’ve identified 4 warning signs for Boston Properties (1 shouldn’t be ignored) you should be aware of.
But note: Boston Properties 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.
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