VP, General Counsel & Secretary Neil Rifkind Sold A Bunch Of Shares In Tiptree

We'd be surprised if Tiptree Inc. (NASDAQ:TIPT) shareholders haven't noticed that the VP, General Counsel & Secretary, Neil Rifkind, recently sold US$416k worth of stock at US$25.00 per share. That sale was 48% of their holding, so it does make us raise an eyebrow.

The Last 12 Months Of Insider Transactions At Tiptree

Notably, that recent sale by Neil Rifkind is the biggest insider sale of Tiptree shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$23.78. 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 chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Tiptree

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Does Tiptree Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Tiptree insiders own about US$355m worth of shares (which is 38% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Tiptree Insider Transactions Indicate?

An insider hasn't bought Tiptree stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Tiptree makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 1 warning sign for Tiptree you should be aware of.

Of course Tiptree may not be the best stock to buy. So you may wish to see this free collection of high quality 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 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.