It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in BlackLine, Inc.'s (NASDAQ:BL) case, it's fantastic news for shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for BlackLine

The Last 12 Months Of Insider Transactions At BlackLine

The Co-CEO & Chairman of the Board Owen Ryan made the biggest insider purchase in the last 12 months. That single transaction was for US$348k worth of shares at a price of US$46.11 each. We do like to see buying, but this purchase was made at well below the current price of US$58.21. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months insiders purchased 12.55k shares for US$593k. On the other hand they divested 8.60k shares, for US$480k. Overall, BlackLine insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

BlackLine is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At BlackLine Have Sold Stock Recently

The last three months saw significant insider selling at BlackLine. In total, Independent Director Mika Yamamoto sold US$200k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership Of BlackLine

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. BlackLine insiders own about US$275m worth of shares (which is 7.6% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At BlackLine Tell Us?

An insider sold BlackLine shares recently, but they didn't buy any. On the other hand, the insider transactions over the last year are encouraging. On top of that, insiders own a significant portion of the company. So we're not too bothered by recent selling. 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. When we did our research, we found 2 warning signs for BlackLine (1 doesn't sit too well with us!) that we believe deserve your full attention.

Of course BlackLine 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.

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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.