Non-Independent Director John Borneman Sold A Bunch Of Shares In Erie Indemnity

Some Erie Indemnity Company (NASDAQ:ERIE) shareholders may be a little concerned to see that the Non-Independent Director, John Borneman, recently sold a substantial US$4.1m worth of stock at a price of US$407 per share. That's a big disposal, and it decreased their holding size by 50%, which is notable but not too bad.

See our latest analysis for Erie Indemnity

The Last 12 Months Of Insider Transactions At Erie Indemnity

In fact, the recent sale by John Borneman was the biggest sale of Erie Indemnity shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$404. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

In the last year Erie Indemnity insiders didn't buy any company stock. 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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Insider Ownership Of Erie Indemnity

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Erie Indemnity insiders own about US$8.7b worth of shares (which is 41% 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 Erie Indemnity Insiders?

An insider hasn't bought Erie Indemnity stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Erie Indemnity is growing earnings. 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. In terms of investment risks, we've identified 1 warning sign with Erie Indemnity and understanding it should be part of your investment process.

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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.