This Insider Has Just Sold Shares In Assured Guaranty

We wouldn't blame Assured Guaranty Ltd. (NYSE:AGO) shareholders if they were a little worried about the fact that Robert Bailenson, the Chief Operating Officer recently netted about US$2.3m selling shares at an average price of US$93.44. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 9.2%.

View our latest analysis for Assured Guaranty

The Last 12 Months Of Insider Transactions At Assured Guaranty

In the last twelve months, the biggest single sale by an insider was when the Deputy Chairman, Dominic Frederico, sold US$5.1m worth of shares at a price of US$92.83 per share. That means that an insider was selling shares at below the current price (US$93.28). 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 3.2% of Dominic Frederico's stake.

Assured Guaranty insiders didn't buy any shares over the last year. 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!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

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. It's great to see that Assured Guaranty insiders own 5.6% of the company, worth about US$268m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Assured Guaranty Tell Us?

Insiders haven't bought Assured Guaranty stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that Assured Guaranty is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Our analysis shows 2 warning signs for Assured Guaranty (1 is potentially serious!) and we strongly recommend you look at them before investing.

Of course Assured Guaranty 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.