Have Baldwin Insurance Group Insiders Been Selling Stock?

Some The Baldwin Insurance Group, Inc. (NASDAQ:BWIN) shareholders may be a little concerned to see that insider James Roche recently sold a substantial US$3.9m worth of stock at a price of US$41.48 per share. That sale reduced their total holding by 17% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for Baldwin Insurance Group

Baldwin Insurance Group Insider Transactions Over The Last Year

In fact, the recent sale by James Roche was the biggest sale of Baldwin Insurance Group shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (US$42.25). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 17% of James Roche's holding.

Happily, we note that in the last year insiders paid US$300k for 15.00k shares. But insiders sold 413.60k shares worth US$13m. 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Baldwin Insurance 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

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Baldwin Insurance Group insiders own 5.5% of the company, worth about US$270m. 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 Baldwin Insurance Group Tell Us?

Insiders haven't bought Baldwin Insurance Group 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. 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. Every company has risks, and we've spotted 1 warning sign for Baldwin Insurance Group you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.