Are insiders shopping for Boston Omaha Company (NASDAQ: BOMN) inventory?
We often see insiders buying stocks in companies that are doing well over the long term. On the flip side, it wouldn’t be worth mentioning that insider selling is known to precede tough times for a company. So before you buy or sell Boston Omaha Corporation (NASDAQ: BOMN) you might want to know if insiders bought or sold.
What is insider selling?
It is quite normal for company insiders, such as board members, to trade in company stocks from time to time. However, most countries require the company to disclose such transactions to the market.
We do not believe that shareholders should simply pursue insider deals. However, logic dictates that you should be careful about whether insiders are buying or selling stocks. As Peter Lynch said, “Insiders could sell their stocks for a number of reasons, but they are buying them for only one thing: they think the price will go up”.
Check out our latest analysis for Boston Omaha
Last 12 months of insider trading in Boston Omaha
Last year, we saw co-chair Adam M. Peterson make the largest insider buy for stock valued at $ 150,000 at about $ 16.00 per share. That means an insider was happy to buy shares at a price above the current price of $ 15.94. While their view may have changed since the purchase, it at least suggests that they had confidence in the company’s future. From our point of view, the price an insider pays for stocks is very important. In general, we notice when insiders bought stocks at stocks bought above current prices, as this suggests that the stocks were worth buying at a higher price too.
While Boston Omaha insiders bought stocks last year, they didn’t sell them. The following graph shows insider transactions (by companies and individuals) over the past year. Click on the graphic below to see the exact details of each Insider Transaction!
NasdaqCM: BOMN Insider Trading Volume September 4, 2020
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Boston Omaha insiders recently bought stocks
For the past three months we’ve seen a bit of inside buying at Boston Omaha. CFO, Chief Accounting Officer Joshua Weisenburger, bought shares worth $ 15,000 during that period. We like it when there are only buyers and no sellers. In this case, however, the amount recently invested is quite small.
Boston Omaha inside ownership
Many investors like to examine how much of a company is owned by insiders. We usually like to see a pretty high level of inside ownership. It appears that Boston Omaha insiders own 2.4% of the company, valued at approximately $ 10 million. While this is a strong, but not outstanding, level of inside ownership, it is enough to indicate some consistency between management and smaller shareholders.
What could Boston Omaha insider deals tell us?
We note that there has been a bit of inside buying (but not selling) lately. The net investment is not enough to give us great encouragement. But insiders have shown more appetite for the stock over the past year. Insiders own stakes in Boston Omaha, and we see no evidence that they are concerned about the future. While it is helpful to know what insiders are doing to buy or sell, it is also helpful to know the risks a particular company is facing. Every business has risks and we have discovered 2 warning signs for Boston Omaha (1 of which is potentially serious!) you should know.
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For the purposes of this article, insiders are persons who report their transactions to the competent supervisory authority. We currently consider open market transactions and private sales, but not derivative transactions.
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This article from Simply Wall St is of a general nature. It is not a recommendation to buy or sell stocks and does not take into account your goals or your financial situation. We want to provide you with a long-term, focused analysis based on fundamental data. Note that our analysis may not take into account the latest price sensitive company announcements or quality materials. Simply Wall St has no position in the stocks mentioned.
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