Yahoo Finance Samuel J. Pollock Adds To Brookfield Holding
Those following along with Brookfield Corporation (TSE:BN) will no doubt be intrigued by the recent purchase of shares by insider Samuel J. Pollock, who spent a stonking CA$12m on stock at an average price of CA$60.78. While that only increased their holding size by 0.9%, it is still a big swing by our standards.
Check out our latest analysis for Brookfield
The Last 12 Months Of Insider Transactions At Brookfield
Notably, that recent purchase by Samuel J. Pollock is the biggest insider purchase of Brookfield shares that we've seen in the last year. That means that even when the share price was higher than CA$57.61 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months insiders purchased 428.83k shares for CA$25m. But insiders sold 145.62k shares worth CA$8.0m. In total, Brookfield insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of Brookfield
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Brookfield insiders own 11% of the company, currently worth about CA$11b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Brookfield Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Brookfield insiders are well aligned, and quite possibly think the share price is too low. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 3 warning signs for Brookfield (2 are a bit concerning!) and we strongly recommend you look at these before investing.
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.
