Have Aflac Incorporated (NYSE:AFL) Insiders Been Selling Their Stock?

Some Aflac Incorporated (NYSE:AFL) shareholders may be a little concerned to see that the Executive VP, Eric Kirsch, recently sold a substantial US$2.0m worth of stock at a price of US$70.90 per share. That sale reduced their total holding by 14% which is hardly insignificant, but far from the worst we've seen.

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The Last 12 Months Of Insider Transactions At Aflac

In fact, the recent sale by Eric Kirsch was the biggest sale of Aflac shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (US$70.94). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. 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 14% of Eric Kirsch's holding.

All up, insiders sold more shares in Aflac than they bought, over the last year. You can see the insider transactions (by companies and individuals) 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!

I will like Aflac better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Aflac 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Aflac insiders own 0.7% of the company, currently worth about US$294m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Aflac Tell Us?

Insiders haven't bought Aflac stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But it is good to see that Aflac is growing earnings. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Aflac. For instance, we've identified 2 warning signs for Aflac (1 makes us a bit uncomfortable) you should be aware of.

But note: Aflac 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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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.