If a corporate insider is spending millions of dollars on company stock, it’s often worth taking a closer look. These individuals tend to have access to real-time company data and their stock purchases can provide valuable trading signals.
In this report, we are going to highlight some interesting insider buying at BlackRock Inc (BLK:US). BlackRock is an American investment management company. Offering active and passive investment strategies, it provides services to both institutional and retail clients. The company is listed on the New York Stock Exchange and currently has a market capitalization of $100.58billion.
BlackRock Inc: Insider Buying
Our insider transaction data shows that between April 14 and April 18, board member William Ford purchased 3,000 BLK shares at an average price of $691.22 per share. This trading activity cost the insider approximately $2,064,000 and increased his holding to 14,915 shares.
Large Insider Purchase
This insider buying is worth highlighting for a couple of reasons. Firstly, Mr. Ford has made a substantial purchase. Not only is it large in nominal terms but it is also large in relative terms as it has increased the size of his holding by 25%.
Secondly, this trade is against the trend. Last year, a lot of insiders at BlackRock were selling stock. With the share price above $800, many took profits off the table. The fact that Mr. Ford has snapped up shares now – while the share price is below $700 – suggests that he sees value in the stock after the recent pullback.
18% Dividend Increase
BlackRock recently posted a solid set of results for the first quarter of 2022.
For the period, the group saw $114 billion of long-term net inflows, with positive flows across all product types, investment styles and regions. This helped it generate a 7% year-over-year increase in revenue and a 14% year-on-year increase in operating income. Diluted earnings per share for the quarter came in at $9.52, up 18% year on year, and well above the consensus forecast of $8.75.
On the back of this performance, the company announced an 18% increase in its quarterly cash dividend. It also repurchased $500 million worth of stock during the quarter.
Looking ahead, management was confident that there’s more growth to come. “I am incredibly excited by the opportunities ahead of us and believe BlackRock is well-positioned to continue generating durable, differentiated organic growth and delivering value for all of our stakeholders,” said CEO and Chairman Laurence D. Fink.
In light of the confidence from management here, and the large dividend increase, we see the insider buying as a bullish indicator.