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Those following along with Brookfield Asset Management Inc. (TSE:BAM.A) will no doubt be intrigued by the recent purchase of shares by Brian Lawson, Vice Chairman of the company, who spent a stonking CA$1.4m on stock at an average price of CA$56.79. While that only increased their holding size by 0.2%, it is still a big swing by our standards.
View our latest analysis for Brookfield Asset Management
Brookfield Asset Management Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Managing Partner, James Flatt, sold CA$51m worth of shares at a price of CA$64.36 per share. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of CA$57.63. So it may not shed much light on insider confidence at current levels.
In the last twelve months insiders purchased 545.45k shares for CA$33m. On the other hand they divested 1.45m shares, for CA$96m. In total, Brookfield Asset Management insiders sold more than they bought over the last year. They sold for an average price of about US$65.97. We are not joyful about insider selling. However, we do note that the average sale price was significantly higher than the current share price (which is CA$57.63). The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership of Brookfield Asset Management
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Brookfield Asset Management insiders own about CA$9.9b worth of shares (which is 11% 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 Do The Brookfield Asset Management Insider Transactions Indicate?
It’s certainly positive to see the recent insider purchases. On the other hand the transaction history, over the last year, isn’t so positive. The recent buying by some insiders , along with high insider ownership, suggest that Brookfield Asset Management insiders are fairly aligned, and optimistic. 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. Every company has risks, and we’ve spotted 4 warning signs for Brookfield Asset Management (of which 1 doesn’t sit too well with us!) you should know about.
Of course Brookfield Asset Management 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, but not derivative transactions.
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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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