Have Safety Insurance Group, Inc. (NASDAQ:SAFT) Insiders Been Selling Their Stock?

By
Simply Wall St
Published
March 04, 2021
NasdaqGS:SAFT

Anyone interested in Safety Insurance Group, Inc. (NASDAQ:SAFT) should probably be aware that the Vice President of Underwriting, James Berry, recently divested US$324k worth of shares in the company, at an average price of US$80.39 each. The eyebrow raising move amounted to a reduction of 13% in their holding.

Check out our latest analysis for Safety Insurance Group

The Last 12 Months Of Insider Transactions At Safety Insurance Group

Notably, that recent sale by James Berry is the biggest insider sale of Safety Insurance Group shares that we've seen in the last year. That means that even when the share price was slightly below the current price of US$82.26, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 13% of James Berry's holding.

Frederic Lindeberg purchased 7.80k shares over the year. The average price per share was US$72.10. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NasdaqGS:SAFT Insider Trading Volume March 4th 2021

Safety Insurance Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Safety Insurance Group Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 5.2% of Safety Insurance Group shares, worth about US$64m. 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?

Insiders sold stock recently, but they haven't been buying. But we take heart from prior transactions. And insiders do own shares. So the recent selling doesn't worry us too much. 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.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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. 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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