Some Brigham Minerals, Inc. (NYSE:MNRL) shareholders may be a little concerned to see that the Chief Financial Officer, Blake Williams, recently sold a substantial US$503k worth of stock at a price of US$18.99 per share. That sale reduced their total holding by 42% which is hardly insignificant, but far from the worst we've seen.
The Last 12 Months Of Insider Transactions At Brigham Minerals
In fact, the recent sale by Blake Williams was the biggest sale of Brigham Minerals shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even below the current price of US$20.36. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. It is worth noting that this sale was only 42% of Blake Williams's holding.
Happily, we note that in the last year insiders paid US$199k for 22.34k shares. But insiders sold 26.50k shares worth US$503k. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
I will like Brigham Minerals better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does Brigham Minerals Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It appears that Brigham Minerals insiders own 0.9% of the company, worth about US$10m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Brigham Minerals Insiders?
An insider hasn't bought Brigham Minerals stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 3 warning signs we've spotted with Brigham Minerals (including 1 which can't be ignored).
But note: Brigham Minerals 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, but not derivative transactions.
This article by Simply Wall St is general in nature. 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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