Insider Buyers At Conifer Holdings Likely Disappointed With 16% Slide

Insiders who acquired US$2.3m worth of Conifer Holdings, Inc.'s (NASDAQ:CNFR) stock at an average price of US$1.92 in the past 12 months may be dismayed by the recent 16% price decline. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth US$1.5m, which is not what they expected.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Conifer Holdings

The Last 12 Months Of Insider Transactions At Conifer Holdings

Over the last year, we can see that the biggest insider purchase was by Executive Chairman & Co-CEO James Petcoff for US$1.5m worth of shares, at about US$2.00 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$1.28). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Notably James Petcoff was also the biggest seller.

In the last twelve months insiders purchased 1.20m shares for US$2.3m. On the other hand they divested 200.00k shares, for US$300k. In total, Conifer Holdings insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Conifer Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Conifer Holdings Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Conifer Holdings insiders own about US$7.3m worth of shares (which is 46% 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.

So What Does This Data Suggest About Conifer Holdings Insiders?

It doesn't really mean much that no insider has traded Conifer Holdings shares in the last quarter. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Conifer Holdings insiders feel good about the company's future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that Conifer Holdings is showing 4 warning signs in our investment analysis, and 1 of those is a bit unpleasant...

Of course Conifer Holdings 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, but not derivative transactions.

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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.