Have Bunge Global Insiders Been Selling Stock?

Some Bunge Global SA (NYSE:BG) shareholders may be a little concerned to see that the Executive Vice President of Global Markets, Christos Dimopoulos, recently sold a substantial US$1.9m worth of stock at a price of US$94.37 per share. That sale reduced their total holding by 21% which is hardly insignificant, but far from the worst we’ve seen.

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The Last 12 Months Of Insider Transactions At Bunge Global

In fact, the recent sale by Christos Dimopoulos was the biggest sale of Bunge Global shares made by an insider individual in the last twelve months, according to our records. So it’s clear an insider wanted to take some cash off the table, even below the current price of US$96.48. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can’t be sure if it does mean insiders think the shares are fully valued, so it’s only a weak sign. It is worth noting that this sale was only 21% of Christos Dimopoulos’s holding.

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

View our latest analysis for Bunge Global

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Insider Ownership Of Bunge Global

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Bunge Global insiders own 0.7% of the company, currently worth about US$122m based on the recent share price. 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 Do The Bunge Global Insider Transactions Indicate?

An insider sold stock recently, but they haven’t been buying. And our longer term analysis of insider transactions didn’t bring confidence, either. But it is good to see that Bunge Global is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. While it’s good to be aware of what’s going on with the insider’s ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 5 warning signs for Bunge Global (2 are significant!) and we strongly recommend you look at them before investing.

But note: Bunge Global 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 of direct interests only, but not derivative transactions or indirect interests.

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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.