Anyone interested in Bright Horizons Family Solutions Inc. (NYSE:BFAM) should probably be aware that the Independent Director, Mary Tocio, recently divested US$455k worth of shares in the company, at an average price of US$91.04 each. The eyebrow raising move amounted to a reduction of 12% in their holding.
See our latest analysis for Bright Horizons Family Solutions
Bright Horizons Family Solutions Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the CEO, President & Director, Stephen Kramer, sold US$1.4m worth of shares at a price of US$95.65 per share. That means that an insider was selling shares at around the current price of US$90.09. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
In the last year Bright Horizons Family Solutions insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of Bright Horizons Family Solutions
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Bright Horizons Family Solutions insiders own 1.0% of the company, worth about US$50m. 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 Bright Horizons Family Solutions Insider Transactions Indicate?
Insiders sold Bright Horizons Family Solutions shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. On the plus side, Bright Horizons Family Solutions makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! 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. Case in point: We've spotted 3 warning signs for Bright Horizons Family Solutions you should be aware of, and 1 of these doesn't sit too well with us.
But note: Bright Horizons Family Solutions 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.