This Insider Has Just Sold Shares In Radian Group

We wouldn't blame Radian Group Inc. (NYSE:RDN) shareholders if they were a little worried about the fact that Edward Hoffman, the Senior EVP recently netted about US$1.4m selling shares at an average price of US$35.53. That sale reduced their total holding by 20% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for Radian Group

The Last 12 Months Of Insider Transactions At Radian Group

In the last twelve months, the biggest single sale by an insider was when the Senior EVP, Brien McMahon, sold US$2.1m worth of shares at a price of US$31.10 per share. That means that an insider was selling shares at slightly below the current price (US$35.69). 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 33% of Brien McMahon's holding.

In the last year Radian Group insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Radian Group 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.

Insider Ownership

Many investors like to check how much of a company is owned by 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. It appears that Radian Group insiders own 1.2% of the company, worth about US$63m. 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 Radian Group Insiders?

Insiders sold Radian Group shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Radian Group. Every company has risks, and we've spotted 2 warning signs for Radian Group (of which 1 is a bit unpleasant!) you should know about.

Of course Radian Group 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.