Bentley Systems, Incorporated (NASDAQ:BSY) insiders sold $90 million worth of stock suggesting impending weakness.
The fact that several Bentley Systems, Incorporated (NASDAQ:BSY) insiders unloaded a sizable amount of stock over the past year might have raised eyebrows among investors. Knowing whether insiders are buying is generally more useful when evaluating insider trades, as insider selling can have a variety of explanations. However, when multiple insiders are selling shares over a specific length of time, shareholders should take this into account, as this could possibly be a red flag.
While insider trading isn’t the most important thing when it comes to long-term investing, we think it makes perfect sense to keep tabs on what insiders are doing.
See our latest analysis for Bentley Systems
The last 12 months of insider trading at Bentley Systems
In the past twelve months, the largest single insider sale occurred when founder Keith Bentley sold $23 million worth of stock at $61.08 per share. While we generally don’t like to see insider selling, it’s more of a concern if the selling takes place at a lower price. It is reassuring that this sale was made at a price well above the current share price of US$42.39. So this may not shed much light on insider confidence at current levels.
Fortunately, we note that last year insiders paid $1.3 million for 26.35,000 shares. But insiders sold 1.61 million shares worth $90 million. In total, insiders sold more shares of Bentley Systems than they bought in the past year. You can see insider trading (by companies and individuals) over the past year illustrated in the table below. By clicking on the graph below, you will be able to see the precise detail of each insider trade!
If you’re like me, then you do not want to miss this free list of growing companies insiders are buying.
Does Bentley Systems boast of high insider ownership?
Examining the total insider holdings in a company can help you know if they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely insiders will be incentivized to build the business for the long term. It’s great to see that Bentley Systems insiders own 24% of the company, worth about $3.1 billion. Most shareholders would be happy to see this type of insider ownership, as it suggests that management’s incentives are well aligned with those of other shareholders.
What could insider trading at Bentley Systems tell us?
The fact that there have been no Bentley Systems insider trading recently certainly doesn’t bother us. It’s encouraging to see that insiders own a lot of stock, but we’d like to see more insider buying, because Bentley Systems’ past year of insider trading doesn’t fill us with confidence. So, while it is useful to know what insiders are doing in terms of buying or selling, it is also useful to know the risks that a particular company faces. During our analysis, we found that Bentley Systems had 4 warning signs and it would be unwise to ignore them.
Sure, you might find a fantastic investment by looking elsewhere. So take a look at this free list of interesting companies.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.