Stock Analysis

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

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NasdaqGS:SIGI
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Anyone interested in Selective Insurance Group, Inc. (NASDAQ:SIGI) should probably be aware that the Independent Director, Cynthia Nicholson, recently divested US$108k worth of shares in the company, at an average price of US$74.08 each. On the bright side, that sale was only 6.7% of their holding, so we doubt it's very meaningful, on its own.

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Selective Insurance Group Insider Transactions Over The Last Year

The Non-Independent Director William Rue made the biggest insider purchase in the last 12 months. That single transaction was for US$1.3m worth of shares at a price of US$52.45 each. We do like to see buying, but this purchase was made at well below the current price of US$75.97. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Over the last year, we can see that insiders have bought 26.00k shares worth US$1.4m. But insiders sold 11.45k shares worth US$738k. In the last twelve months there was more buying than selling by Selective Insurance Group insiders. 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!

insider-trading-volume
NasdaqGS:SIGI Insider Trading Volume March 12th 2021

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).

Does Selective 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Selective Insurance Group insiders own 1.9% of the company, worth about US$87m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Selective Insurance Group Tell Us?

An insider sold Selective Insurance Group shares recently, but they didn't buy any. But we take heart from prior transactions. And insiders do own shares. So we're happy enough to look past some selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Selective Insurance Group. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Selective Insurance Group.

But note: Selective Insurance Group 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.

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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