We wouldn’t blame Bank of America Corporation ((NYSE:(BA))C) shareholders if they were a little worried about the fact that Rudolf Bless, the Chief Accounting Officer recently netted about US$5.1m selling shares at an average price of US$36.44. Probably the most concerning element of the whole transaction is that the disposal amounted to 57% of their entire holding.
View our latest analysis for Bank of America
Bank of America Insider Transactions Over The Last Year
Notably, that recent sale by Rudolf Bless is the biggest insider sale of Bank of America shares that we’ve seen in the last year. That means that an insider was selling shares at around the current price of US$34.71. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn’t a major concern, though it’s hardly a good sign.
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!
I will like Bank of America better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it’s a good sign if insiders own a significant number of shares in the company. It’s great to see that Bank of America insiders own 0.1% of the company, worth about US$367m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Bank of America Tell Us?
An insider sold stock recently, but they haven’t been buying. Looking to the last twelve months, our data doesn’t show any insider buying. The company boasts high insider ownership, but we’re a little hesitant, given the history of share sales. 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. Case in point: We’ve spotted 1 warning sign for Bank of America 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.
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