Trade Alert: Vice Chairman of Insurance Operations & Director Of Berkshire Hathaway Ajit Jain Has Sold Stock

Some Berkshire Hathaway Inc. (NYSE:BRK.A) shareholders may be a little concerned to see that the Vice Chairman of Insurance Operations & Director, Ajit Jain, recently sold a substantial US$139m worth of stock at a price of US$695,418 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 67% of their entire holding.

See our latest analysis for Berkshire Hathaway

The Last 12 Months Of Insider Transactions At Berkshire Hathaway

In fact, the recent sale by Ajit Jain was the biggest sale of Berkshire Hathaway shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$671,750. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

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!

I will like Berkshire Hathaway better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Berkshire Hathaway Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Berkshire Hathaway insiders own about US$143b worth of shares (which is 15% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Berkshire Hathaway Tell Us?

An insider hasn't bought Berkshire Hathaway 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. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of 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. Every company has risks, and we've spotted 2 warning signs for Berkshire Hathaway (of which 1 is a bit unpleasant!) you should know about.

Of course Berkshire Hathaway may not be the best stock to buy. So you may wish to see this free collection of high quality 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.