We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell ICC Holdings Inc (NASDAQ:ICCH), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, rules govern insider transactions, including certain disclosures.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
ICC Holdings Insider Transactions Over The Last Year
President Arron Sutherland made the biggest insider purchase in the last 12 months. That single transaction was for US$50k worth of shares at a price of US$15.15 each. That means that even when the share price was higher, an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. It’s not at all bad to see insiders buy shares at or above current prices.
In the last twelve months insiders paid US$86k for 5.71k shares purchased. In the last twelve months there was more buying than selling by ICC Holdings insiders. Their average price was about US$15.04. These transactions suggest that insiders have considered the current price of US$13.51 attractive. You can see the insider transactions 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!
ICC Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at ICC Holdings Have Bought Stock Recently
We saw some ICC Holdings insider buying shares in the last three months. Arron Sutherland bought US$14k worth of shares in that time. We like it when there are only buyers, and no sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
Insider Ownership of ICC Holdings
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. It’s great to see that ICC Holdings insiders own 43% of the company, worth about US$18m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About ICC Holdings Insiders?
Our data shows a little more insider buying than selling in the last three months. But the difference isn’t much. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like ICC Holdings insiders think the business has merit. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
But note: ICC Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.