We wouldn't blame Arch Capital Group Ltd. (NASDAQ:ACGL) shareholders if they were a little worried about the fact that John Pasquesi, the Independent Chairman of the Board recently netted about US$9.3m selling shares at an average price of US$94.18. However, that sale only accounted for 2.5% of their holding, so arguably it doesn't say much about their conviction.
Our free stock report includes 2 warning signs investors should be aware of before investing in Arch Capital Group. Read for free now.Arch Capital Group Insider Transactions Over The Last Year
Notably, that recent sale by John Pasquesi is the biggest insider sale of Arch Capital Group shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$94.59. 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 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!
Check out our latest analysis for Arch Capital Group
If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
Insider Ownership Of Arch Capital Group
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Arch Capital Group insiders own about US$1.0b worth of shares (which is 3.0% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Arch Capital Group Tell Us?
An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Arch Capital Group. While conducting our analysis, we found that Arch Capital Group has 2 warning signs and it would be unwise to ignore these.
But note: Arch Capital Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.
Valuation is complex, but we're here to simplify it.
Discover if Arch Capital Group might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.