Frederic Lindeberg Is The Independent Director of Safety Insurance Group, Inc. (NASDAQ:SAFT) And They Just Picked Up 13% More Shares

By
Simply Wall St
Published
November 27, 2020

Investors who take an interest in Safety Insurance Group, Inc. (NASDAQ:SAFT) should definitely note that the Independent Director, Frederic Lindeberg, recently paid US$74.50 per share to buy US$209k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 13%.

See our latest analysis for Safety Insurance Group

Safety Insurance Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Vice President of Underwriting, James Berry, sold US$293k worth of shares at a price of US$82.51 per share. So we know that an insider sold shares at around the present share price of US$75.25. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. The only individual insider seller over the last year was James Berry.

Frederic Lindeberg bought a total of 7.80k shares over the year at an average price of US$72.10. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

NasdaqGS:SAFT Insider Trading Volume November 27th 2020

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Safety Insurance Group insiders own about US$58m worth of shares. That equates to 5.2% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Safety Insurance Group Insiders?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Safety Insurance Group shares, given these transactions (along with notable insider ownership of the company). Along with insider transactions, I recommend checking if Safety Insurance Group is growing revenue. This free chart of historic revenue and earnings should make that easy.

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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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