We wouldn’t blame Everest Re Group, Ltd. (NYSE:RE) shareholders if they were a little worried about the fact that John Doucette, the Executive VP recently netted about US$1.3m selling shares at an average price of US$252. That sale reduced their total holding by 20.2% which is hardly insignificant, but far from the worst we’ve seen.
Everest Re Group Insider Transactions Over The Last Year
Notably, that recent sale by John Doucette is the biggest insider sale of Everest Re Group shares that we’ve seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$249. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Over the last year, we can see that insiders have bought 1520 shares worth US$370k. But insiders sold 7448 shares worth US$1.8m. Over the last year we saw more insider selling of Everest Re Group shares, than buying. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Insider Ownership of Everest Re Group
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. Everest Re Group insiders own 1.6% of the company, currently worth about US$162m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Everest Re Group Tell Us?
The insider sales have outweighed the insider buying, at Everest Re Group, in the last three months. Despite some insider buying, the longer term picture doesn’t make us feel much more positive. But since Everest Re Group is profitable and growing, we’re not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn’t make us feel confident about the company. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
But note: Everest Re Group 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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