Have Insiders Sold BlackRock Shares Recently?

We wouldn't blame BlackRock, Inc. (NYSE:BLK) shareholders if they were a little worried about the fact that J. Kushel, the Senior MD & Head of the Portfolio Management Group recently netted about US$1.7m selling shares at an average price of US$852. However, that sale only accounted for 1.4% of their holding, so arguably it doesn't say much about their conviction.

Our free stock report includes 1 warning sign investors should be aware of before investing in BlackRock. Read for free now.

The Last 12 Months Of Insider Transactions At BlackRock

In fact, the recent sale by J. Kushel was the biggest sale of BlackRock shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even below the current price of US$908. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 1.4% of J. Kushel's holding.

J. Kushel sold a total of 2.43k shares over the year at an average price of US$869. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for BlackRock

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Does BlackRock 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. BlackRock insiders own about US$2.8b worth of shares (which is 2.0% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About BlackRock Insiders?

An insider hasn't bought BlackRock stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that BlackRock is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. 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 example - BlackRock has 1 warning sign we think you should be aware of.

Of course BlackRock may not be the best stock to buy. So you may wish to see this free collection of high quality 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 of direct interests only, but not derivative transactions or indirect interests.

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.