Have Insiders Sold Arthur J. Gallagher Shares Recently?

We wouldn't blame Arthur J. Gallagher & Co. (NYSE:AJG) shareholders if they were a little worried about the fact that Richard Cary, the Chief Accounting Officer & Controller recently netted about US$1.6m selling shares at an average price of US$261. That's a big disposal, and it decreased their holding size by 11%, which is notable but not too bad.

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Arthur J. Gallagher Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Corporate VP & CFO, Douglas Howell, for US$4.2m worth of shares, at about US$300 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$251). So it is hard to draw any strong conclusion from it.

In the last twelve months insiders purchased 5.17k shares for US$1.3m. On the other hand they divested 75.59k shares, for US$24m. Over the last year we saw more insider selling of Arthur J. Gallagher shares, than buying. 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 Arthur J. Gallagher

I will like Arthur J. Gallagher better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Arthur J. Gallagher

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Arthur J. Gallagher insiders own 1.0% of the company, worth about US$654m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Arthur J. Gallagher Insiders?

The stark truth for Arthur J. Gallagher is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, Arthur J. Gallagher makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. For instance, we've identified 4 warning signs for Arthur J. Gallagher (1 is concerning) you should be aware of.

Of course Arthur J. Gallagher 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.