This Insider Has Just Sold Shares In Ameriprise Financial

We wouldn't blame Ameriprise Financial, Inc. (NYSE:AMP) shareholders if they were a little worried about the fact that William Truscott, the Chief Executive Officer of Global Asset Management recently netted about US$3.2m selling shares at an average price of US$540. That sale reduced their total holding by 24% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for Ameriprise Financial

The Last 12 Months Of Insider Transactions At Ameriprise Financial

In the last twelve months, the biggest single sale by an insider was when the Chairman & CEO, James Cracchiolo, sold US$8.9m worth of shares at a price of US$409 per share. That means that even when the share price was below the current price of US$529, an insider wanted to cash in some shares. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 12% of James Cracchiolo's stake.

Insiders in Ameriprise Financial didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

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. We usually like to see fairly high levels of insider ownership. Ameriprise Financial insiders own about US$154m worth of shares (which is 0.3% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Ameriprise Financial Insiders?

An insider hasn't bought Ameriprise Financial stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. On the plus side, Ameriprise Financial makes money, and is growing profits. 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. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 1 warning sign for Ameriprise Financial you should know about.

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 of direct interests only, but not derivative transactions or indirect interests.

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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.