We wouldn’t blame The Hanover Insurance Group, Inc. (NYSE:THG) shareholders if they were a little worried about the fact that J. Huber, the Executive VP recently netted about US$980k selling shares at an average price of US$130. That sale reduced their total holding by 19.9% which is hardly insignificant, but far from the worst we’ve seen.
The Last 12 Months Of Insider Transactions At Hanover Insurance Group
Notably, that recent sale by J. Huber is the biggest insider sale of Hanover Insurance Group shares that we’ve seen in the last year. That means that an insider was selling shares at below the current price (US$133). 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 19.9% of J. Huber’s stake.
In the last twelve months insiders netted US$2.1m for 17128 shares sold. Hanover Insurance Group 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 Hanover Insurance Group Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Insiders own 0.8% of Hanover Insurance Group shares, worth about US$41m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Hanover Insurance Group Insiders?
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 Hanover 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’re in no rush to buy! 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.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.