Insiders are probably glad they sold their shares in Becton, Dickinson and Company (NYSE:BDX) after 3.2% drop

Insiders at Becton, Dickinson and Company (NYSE:BDX) sold US$122k worth of stock at an average price of US$256 a share over the past year, making the most of their investment. The company's market valuation decreased by US$2.1b after the stock price dropped 3.2% over the past week, but insiders were spared from painful losses.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Becton Dickinson

The Last 12 Months Of Insider Transactions At Becton Dickinson

The Executive VP & President of Life Sciences Segment, David Hickey, made the biggest insider sale in the last 12 months. That single transaction was for US$122k worth of shares at a price of US$256 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$230). So it may not tell us anything about how insiders feel about the current share price. David Hickey was the only individual insider to sell shares in the last twelve months.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Becton Dickinson 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 Becton Dickinson insiders own 0.2% of the company, worth about US$108m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Becton Dickinson Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Becton Dickinson shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Becton Dickinson insiders selling. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that Becton Dickinson has 1 warning sign and it would be unwise to ignore it.

But note: Becton Dickinson 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.

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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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