BlackBerry's Market Cap Declines To CA$4.9B But Insiders Managed To Hedge Their Losses

By selling US$2.1m worth of BlackBerry Limited (TSE:BB) stock at an average sell price of US$11.86 over the last year, insiders seemed to have made the most of their holdings. The company's market valuation decreased by CA$287m after the stock price dropped 5.6% over the past week, but insiders were spared from painful losses.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for BlackBerry

BlackBerry Insider Transactions Over The Last Year

The insider, Thomas Eacobacci, made the biggest insider sale in the last 12 months. That single transaction was for CA$2.0m worth of shares at a price of CA$11.82 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (CA$8.49). So it may not shed much light on insider confidence at current levels.

In the last year BlackBerry insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Does BlackBerry Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that BlackBerry insiders own 1.7% of the company, worth about CA$83m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At BlackBerry Tell Us?

It doesn't really mean much that no insider has traded BlackBerry shares in the last quarter. Our analysis of BlackBerry insider transactions leaves us cautious. But we do like the fact that insiders own a fair chunk of the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing BlackBerry. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of BlackBerry.

Of course BlackBerry may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

This article was written by Simply Wall St