The fact that multiple Blackstone Inc. (NYSE:BX) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Blackstone

The Last 12 Months Of Insider Transactions At Blackstone

Notably, that recent sale by Chief Legal Officer John Finley was not the only time they sold Blackstone shares this year. They previously made an even bigger sale of -US$6.3m worth of shares at a price of US$128 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$133. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 37% of John Finley's stake.

In the last twelve months insiders purchased 5.39k shares for US$643k. But insiders sold 137.26k shares worth US$17m. Over the last year we saw more insider selling of Blackstone shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction! insider-trading-volume

I will like Blackstone better if I see some big insider buys. While we wait, check out this freelist of undervalued and small cap stocks with considerable, recent, insider buying.

Blackstone Insiders Are Selling The Stock

We've seen more insider selling than insider buying at Blackstone recently. In total, insiders sold US$6.6m worth of shares in that time. On the flip side, insider Ruth Porat spent US$35k on purchasing shares. Generally this level of net selling might be considered a bit bearish.

Does Blackstone Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Blackstone insiders own 0.2% of the company, currently worth about US$391m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.



So What Do The Blackstone Insider Transactions Indicate?

The stark truth for Blackstone is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But since Blackstone is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Blackstone. When we did our research, we found 3 warning signs for Blackstone (1 is concerning!) that we believe deserve your full attention.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this freelist of interesting 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.