Insiders were net buyers of Brookfield Corporation's (TSE:BN ) stock during the past year. That is, insiders bought more stock than they sold.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
We've discovered 2 warning signs about Brookfield. View them for free.The insider Samuel J. Pollock made the biggest insider purchase in the last 12 months. That single transaction was for CA$12m worth of shares at a price of CA$61.08 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$74.89. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Samuel J. Pollock bought 530.00k shares over the last 12 months at an average price of CA$59.17. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
See our latest analysis for Brookfield
Brookfield is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Brookfield insiders own 11% of the company, worth about CA$13b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
It doesn't really mean much that no insider has traded Brookfield shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like Brookfield insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we've found that Brookfield has 2 warning signs (1 doesn't sit too well with us!) that deserve your attention before going any further with your analysis.
Of course Brookfield 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.
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