This Insider Has Just Sold Shares In CNA Financial

We wouldn't blame CNA Financial Corporation (NYSE:CNA) shareholders if they were a little worried about the fact that Daniel Franzetti, the Executive VP & Chief Administrative Officer recently netted about US$637k selling shares at an average price of US$49.06. That sale reduced their total holding by 15% which is hardly insignificant, but far from the worst we've seen.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

CNA Financial Insider Transactions Over The Last Year

The Executive VP & Chief Human Resources Officer, Elizabeth Aguinaga, made the biggest insider sale in the last 12 months. That single transaction was for US$1.3m worth of shares at a price of US$49.60 each. That means that even when the share price was slightly below the current price of US$49.80, an insider wanted to cash in some shares. 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. 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. We note that the biggest single sale was only 35% of Elizabeth Aguinaga's holding.

All up, insiders sold more shares in CNA Financial 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!

See our latest analysis for CNA Financial

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

Does CNA Financial Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. CNA Financial insiders own about US$77m worth of shares. That equates to 0.6% of the company. 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?

The insider sales have outweighed the insider buying, at CNA Financial, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! 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. Case in point: We've spotted 2 warning signs for CNA Financial you should be aware of.

Of course CNA Financial 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.