We'd be surprised if BlackLine, Inc. (NASDAQ:BL) shareholders haven't noticed that the Independent Director, Barbara Whye, recently sold US$280k worth of stock at US$52.01 per share. Equally important, that sale actually reduced their holding by a full 61% which hardly makes us feel bullish about the stock.

The Last 12 Months Of Insider Transactions At BlackLine

The Co-CEO & Chairman of the Board Owen Ryan made the biggest insider purchase in the last 12 months. That single transaction was for US$348k worth of shares at a price of US$46.11 each. We do like to see buying, but this purchase was made at well below the current price of US$51.56. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Over the last year, we can see that insiders have bought 12.55k shares worth US$593k. On the other hand they divested 10.38k shares, for US$549k. In the last twelve months there was more buying than selling by BlackLine insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

BlackLine is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. BlackLine insiders own about US$244m worth of shares (which is 7.6% of the company). 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 BlackLine Insider Transactions Indicate?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about BlackLine. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 2 warning signs for BlackLine (of which 1 can't be ignored!) you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.