Ball Corporation (NYSE:BALL) shareholders (or potential shareholders) will be happy to see that the Executive VP & CFO, Scott Morrison, recently bought a whopping US$1.0m worth of stock, at a price of US$57.59. While that only increased their holding size by 3.3%, it is still a big swing by our standards.
Ball Insider Transactions Over The Last Year
In fact, the recent purchase by Scott Morrison was the biggest purchase of Ball shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of US$59.47. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.
In the last twelve months insiders purchased 82.56k shares for US$6.5m. On the other hand they divested 12.55k shares, for US$1.1m. Overall, Ball insiders were net buyers during the last year. They paid about US$79.26 on average. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Ball is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Ball Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Ball insiders own 0.7% of the company, worth about US$134m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Ball Insiders?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Ball insiders are well aligned, and quite possibly think the share price is too low. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ball. When we did our research, we found 2 warning signs for Ball (1 is a bit concerning!) that we believe deserve your full attention.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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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.
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