Insiders At BRP Group Sold US$13m In Stock, Alluding To Potential Weakness

In the last year, many BRP Group, Inc. (NASDAQ:BRP) insiders sold a substantial stake in the company which may have sparked shareholders' attention. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, if numerous insiders are selling, shareholders should investigate more.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for BRP Group

The Last 12 Months Of Insider Transactions At BRP Group

The Co-Founder & Chairman, L. Baldwin, made the biggest insider sale in the last 12 months. That single transaction was for US$4.8m worth of shares at a price of US$25.72 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$26.64. 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 52% of L. Baldwin's holding.

Happily, we note that in the last year insiders paid US$300k for 15.00k shares. But insiders sold 489.43k shares worth US$13m. Over the last year we saw more insider selling of BRP Group shares, than buying. 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!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insiders At BRP Group Have Sold Stock Recently

Over the last three months, we've seen a bit of insider selling at BRP Group. General Counsel & Corporate Secretary Seth Cohen sold just US$30k worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the amount sold isn't enough for us to put any weight on it.

Does BRP Group Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. BRP Group insiders own about US$173m worth of shares (which is 5.5% 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 BRP Group Tell Us?

While there has not been any insider buying in the last three months, there has been selling. However, the sales are not big enough to concern us at all. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the BRP Group insiders selling. Of course, the future is what matters most. So if you are interested in BRP Group, you should check out this free report on analyst forecasts for the company.

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.

Have 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.