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Even if it's not a huge purchase, we think it was good to see that Linden Evans, the President of Black Hills Corporation (NYSE:BKH) recently shelled out US$57k to buy stock, at US$57.42 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
See our latest analysis for Black Hills
Black Hills Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Director Tony Jensen for US$200k worth of shares, at about US$58.43 per share. So it's clear an insider wanted to buy, at around the current price, which is US$59.04. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Black Hills share holders is that insiders were buying at near the current price.
Black Hills insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Black Hills insiders own about US$26m worth of shares. That equates to 0.7% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Black Hills Tell Us?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Black Hills insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Black Hills. When we did our research, we found 2 warning signs for Black Hills (1 shouldn't be ignored!) that we believe deserve your full attention.