Have Insiders Sold American Coastal Insurance Shares Recently?

Anyone interested in American Coastal Insurance Corporation (NASDAQ:ACIC) should probably be aware that the COO & Chief Information Officer, Christopher Griffith, recently divested US$218k worth of shares in the company, at an average price of US$11.86 each. The eyebrow raising move amounted to a reduction of 15% in their holding.

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The Last 12 Months Of Insider Transactions At American Coastal Insurance

Notably, that recent sale by COO & Chief Information Officer Christopher Griffith was not the only time they sold American Coastal Insurance shares this year. They previously made an even bigger sale of -US$735k worth of shares at a price of US$11.01 per share. That means that even when the share price was below the current price of US$11.95, an insider wanted to cash in some shares. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 35% of Christopher Griffith's holding.

Over the last year, we can see that insiders have bought 14.50k shares worth US$169k. On the other hand they divested 105.19k shares, for US$1.2m. Christopher Griffith divested 105.19k shares over the last 12 months at an average price of US$11.30. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for American Coastal Insurance

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Insider Ownership Of American Coastal Insurance

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. American Coastal Insurance insiders own about US$279m worth of shares (which is 48% 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.

What Might The Insider Transactions At American Coastal Insurance Tell Us?

An insider hasn't bought American Coastal Insurance stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. 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 American Coastal Insurance. For example, American Coastal Insurance has 2 warning signs (and 1 which can't be ignored) we think you should know about.

But note: American Coastal Insurance 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.

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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.