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This Insider Has Just Sold Shares In Verisk Analytics, Inc. (NASDAQ:VRSK)
We wouldn't blame Verisk Analytics, Inc. (NASDAQ:VRSK) shareholders if they were a little worried about the fact that Christopher Foskett, the Lead Independent Director recently netted about US$1.2m selling shares at an average price of US$180. That's a big disposal, and it decreased their holding size by 25%, which is notable but not too bad.
Check out our latest analysis for Verisk Analytics
The Last 12 Months Of Insider Transactions At Verisk Analytics
Notably, that recent sale by Christopher Foskett is the biggest insider sale of Verisk Analytics shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$181. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 25% of Christopher Foskett's holding.
Verisk Analytics insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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Does Verisk Analytics 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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Verisk Analytics insiders own 0.9% of the company, worth about US$245m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Verisk Analytics Insiders?
An insider sold Verisk Analytics shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Verisk Analytics is growing earnings. 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. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To help with this, we've discovered 4 warning signs (1 is concerning!) that you ought to be aware of before buying any shares in Verisk Analytics.
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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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.
Verisk Analytics, Inc. provides data analytics solutions to the insurance markets in the United States and internationally.
Proven track record with imperfect balance sheet.