Executive VP & Chief Human Resources Officer Elizabeth Aguinaga Sold A Bunch Of Shares In CNA Financial

Some CNA Financial Corporation (NYSE:CNA) shareholders may be a little concerned to see that the Executive VP & Chief Human Resources Officer, Elizabeth Aguinaga, recently sold a substantial US$1.3m worth of stock at a price of US$49.60 per share. That sale reduced their total holding by 35% which is hardly insignificant, but far from the worst we've seen.

See our latest analysis for CNA Financial

The Last 12 Months Of Insider Transactions At CNA Financial

In fact, the recent sale by Elizabeth Aguinaga was the biggest sale of CNA Financial shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$50.00. 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. We note that the biggest single sale was only 35% of Elizabeth Aguinaga's holding.

CNA Financial insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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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 appears that CNA Financial insiders own 0.6% of the company, worth about US$84m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The CNA Financial Insider Transactions Indicate?

Insiders haven't bought CNA Financial stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. On the plus side, CNA Financial makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 2 warning signs for CNA Financial that deserve your attention before buying any shares.

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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.