Independent Director Of Belden Sold 30% Of Their Shares

We'd be surprised if Belden Inc. (NYSE:BDC) shareholders haven't noticed that the Independent Director, Jonathan Klein, recently sold US$373k worth of stock at US$124 per share. That sale was 30% of their holding, so it does make us raise an eyebrow.

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The Last 12 Months Of Insider Transactions At Belden

The Independent Director, Gregory McCray, made the biggest insider sale in the last 12 months. That single transaction was for US$442k worth of shares at a price of US$105 each. That means that an insider was selling shares at slightly below the current price (US$122). 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was 81% of Gregory McCray's stake.

In the last year Belden insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Belden

I will like Belden better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Belden Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Belden insiders own 1.2% of the company, worth about US$60m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Belden Insider Transactions Indicate?

An insider hasn't bought Belden stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. On the plus side, Belden makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 1 warning sign for Belden you should be aware of.

But note: Belden 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 of direct interests only, but not derivative transactions or indirect interests.

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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.