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Insider sales at Brunswick fetched a good price

techsm5

Brunswick Corporation (NYSE:BC) stock jumped 3.4% last week, but insiders who have sold US$175,000 worth of stock over the past year are likely to be in best position. Holding shares would have meant that their investment would be worth less today than it was when sold. So, selling at an average price of US$85.86, which is higher than the current price, might have been the best decision.

While we don’t think shareholders should simply follow insider trades, we think it makes perfect sense to keep an eye on what insiders are doing.

See our latest analysis for Braunschweig

Brunswick Insider Trading Over the Past Year

In the past twelve months, the largest single insider sale occurred when insider Randall Altman sold US$175,000 worth of stock at US$85.86 per share. While we generally don’t like to see insider selling, it’s more of a concern if the selling takes place at a lower price. The good news is that this big sell was well above the current price of US$72.11. It is therefore difficult to draw a firm conclusion. The only individual insider seller in the past year was Randall Altman.

You can see insider trading (by companies and individuals) over the past year illustrated in the table below. If you click on the chart, you can see all individual trades including stock price, individual and date!

insider-trading-volume
NYSE: British Columbia Insider Trading Volume as of January 4, 2023

If you’re like me, then you do not want to miss this free list of growing companies insiders are buying.

Insider ownership

I like to look at how many shares insiders own in a company, to help me get a sense of how aligned they are with insiders. High insider participation often makes company management more concerned with the interests of shareholders. It appears that Brunswick insiders own 1.3% of the company, worth around $70 million. While this is a high but not exceptional level of insider ownership, it suffices to indicate some alignment between management and small shareholders.

So what do Brunswick insider trading indicate?

It doesn’t mean much that no insider has traded Brunswick shares in the last quarter. We are not very encouraged by the transactions of Brunswick insiders. The modest level of insider ownership is, at least, some comfort. In addition to knowing what insider trading is going on, it is beneficial to identify the risks that Brunswick faces. Know that Brunswick shows 2 warning signs in our investment analysisand 1 of them is a little worrying…

Sure, you might find a fantastic investment by looking elsewhere. So take a look at this free list of interesting companies.

For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.

What are the risks and opportunities for Braunschweig?

Brunswick Corporation designs, manufactures and markets leisure products worldwide.

See the full analysis

Awards

  • Trades 54.6% below our estimate of its fair value

  • Revenues are expected to increase by 8.99% per year

  • Revenue increased by 9.1% over the past year

Risks

  • Debt is not well covered by operating cash flow

See all risks and rewards

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

techsm5

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