This Insider Has Just Sold Shares In Selective Insurance Group, Inc. (NASDAQ:SIGI)

We wouldn’t blame Selective Insurance Group, Inc. (NASDAQ:SIGI) shareholders if they were a little worried about the fact that William Rue, the Director recently netted about US$605k selling shares at an average price of US$77.64. However, it’s crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 2.3%.

Check out our latest analysis for Selective Insurance Group

The Last 12 Months Of Insider Transactions At Selective Insurance Group

In the last twelve months, the biggest single sale by an insider was when the Independent Director, Cynthia Nicholson, sold US$694k worth of shares at a price of US$70.95 per share. That means that an insider was selling shares at slightly below the current price (US$80.14). 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don’t know for sure what they think of the stock price. This single sale was just 34.3% of Cynthia Nicholson’s stake.

In the last twelve months insiders netted US$3.4m for 48684.94 shares sold. In the last year Selective Insurance Group insiders didn’t buy any company stock. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

NasdaqGS:SIGI Recent Insider Trading, August 12th 2019
NasdaqGS:SIGI Recent Insider Trading, August 12th 2019

Does Selective Insurance Group Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 2.0% of Selective Insurance Group shares, worth about US$95m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.

So What Do The Selective Insurance Group Insider Transactions Indicate?

An insider sold stock recently, but they haven’t been buying. Looking to the last twelve months, our data doesn’t show any insider buying. But since Selective Insurance Group is profitable and growing, we’re not too worried by this. While insiders do own shares, they don’t own a heap, and they have been selling. We’d think twice before buying! 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.

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, but not derivative transactions.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.