Have Insiders Sold Chubb Shares Recently?

We wouldn't blame Chubb Limited (NYSE:CB) shareholders if they were a little worried about the fact that Joseph Wayland, the Executive VP recently netted about US$2.9m selling shares at an average price of US$287. That sale reduced their total holding by 12% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for Chubb

Chubb Insider Transactions Over The Last Year

The Executive Chairman & CEO, Evan Greenberg, made the biggest insider sale in the last 12 months. That single transaction was for US$18m worth of shares at a price of US$290 each. That means that an insider was selling shares at below the current price (US$291). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 9.3% of Evan Greenberg's holding.

Chubb 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does Chubb Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Chubb insiders own about US$553m worth of shares (which is 0.5% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Chubb Insider Transactions Indicate?

An insider sold Chubb shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, Chubb makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Chubb has 1 warning sign we think you should be aware of.

But note: Chubb 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 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.