Baldwin Insurance Group Insiders Sell US$14m Of Stock, Possibly Signalling Caution

In the last year, many The Baldwin Insurance Group, Inc. (NASDAQ:BWIN) 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, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Baldwin Insurance Group

The Last 12 Months Of Insider Transactions At Baldwin Insurance Group

In the last twelve months, the biggest single sale by an insider was when the Co-Founder & Chairman, L. Baldwin, sold US$4.8m worth of shares at a price of US$25.72 per share. That means that even when the share price was below the current price of US$42.75, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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 52% of L. Baldwin's holding.

In the last twelve months insiders purchased 15.00k shares for US$300k. But insiders sold 549.14k shares worth US$14m. Over the last year we saw more insider selling of Baldwin Insurance Group shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insiders At Baldwin Insurance Group Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at Baldwin Insurance Group. In total, insiders dumped US$1.9m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Does Baldwin Insurance 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. We usually like to see fairly high levels of insider ownership. It's great to see that Baldwin Insurance Group insiders own 5.4% of the company, worth about US$278m. 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 Baldwin Insurance Group Tell Us?

Insiders haven't bought Baldwin Insurance Group stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that Baldwin Insurance Group has 1 warning sign and it would be unwise to ignore it.

Of course Baldwin Insurance 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com