We wouldn’t blame Assurant, Inc. (NYSE:AIZ) shareholders if they were a little worried about the fact that Michael Campbell, a company insider, recently netted about US$683k selling shares at an average price of US$124. That diminished their holding by a very significant 50.2%, which arguably implies a strong desire to reallocate capital.
The Last 12 Months Of Insider Transactions At Assurant
Over the last year, we can see that the biggest insider sale was by the Executive VP & COO , Gene Mergelmeyer, for US$1.9m worth of shares, at about US$125 per share. So what is clear is that an insider saw fit to sell at around the current price of US$124. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it’s not too bad (but it’s still not a positive).
We note that in the last year insiders divested 21607 shares for a total of US$2.7m. Assurant insiders didn’t buy any shares over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Does Assurant Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Assurant insiders own about US$85m worth of shares. That equates to 1.1% of the company. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Assurant Tell Us?
Insiders sold stock recently, but they haven’t been buying. And even if we look to the last year, we didn’t see any purchases. Insider ownership isn’t particularly high, so this analysis makes us cautious about the company. So we’d only buy after careful consideration. 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: Assurant 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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If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.