Don't Ignore The Insider Selling In Greenlight Capital Re

Anyone interested in Greenlight Capital Re, Ltd. (NASDAQ:GLRE) should probably be aware that the Independent Director, Ian Isaacs, recently divested US$125k worth of shares in the company, at an average price of US$13.84 each. However, the silver lining is that the sale only reduced their total holding by 6.2%, so we're hesitant to read anything much into it, on its own.

See our latest analysis for Greenlight Capital Re

Greenlight Capital Re Insider Transactions Over The Last Year

Notably, that recent sale by Ian Isaacs is the biggest insider sale of Greenlight Capital Re shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$13.57. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Ian Isaacs divested 18.02k shares over the last 12 months at an average price of US$12.92. 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 Greenlight Capital Re 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 Of Greenlight Capital Re

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that Greenlight Capital Re insiders own 14% of the company, worth about US$68m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Greenlight Capital Re Tell Us?

An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for Greenlight Capital Re that deserve your attention before buying any shares.

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.