Some CNO Financial Group, Inc. (NYSE:CNO) shareholders may be a little concerned to see that the Senior VP & Chief Accounting Officer, John Kline, recently sold a substantial US$610k worth of stock at a price of US$23.18 per share. That sale reduced their total holding by 34% which is hardly insignificant, but far from the worst we've seen.
CNO Financial Group Insider Transactions Over The Last Year
Notably, that recent sale by John Kline is the biggest insider sale of CNO Financial Group shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$22.66. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
In the last twelve months insiders purchased 72.76k shares for US$860k. But insiders sold 63.42k shares worth US$1.3m. All up, insiders sold more shares in CNO Financial Group than they bought, over the last year. The sellers received a price of around US$21.02, on average. It's not particularly great to see insiders were selling shares at below recent prices. Of course, the sales could be motivated for a multitude of reasons, so we shouldn't jump to conclusions. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 1.2% of CNO Financial Group shares, worth about US$37m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At CNO Financial Group Tell Us?
Unfortunately, there has been more insider selling of CNO Financial Group stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that CNO Financial Group is growing earnings. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! While we like knowing 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've found that CNO Financial Group has 5 warning signs (2 are concerning!) that deserve your attention before going any further with your analysis.
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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, but not derivative transactions.
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This article by Simply Wall St is general in nature. 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.
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