Employers Holdings Executive VP & CFO Acquires 68% More Stock

Potential Employers Holdings, Inc. (NYSE:EIG) shareholders may wish to note that the Executive VP & CFO, Michael Pedraja, recently bought US$204k worth of stock, paying US$37.09 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 68%, potentially signalling some real optimism.

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The Last 12 Months Of Insider Transactions At Employers Holdings

In fact, the recent purchase by Michael Pedraja was the biggest purchase of Employers Holdings shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of US$38.40. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Employers Holdings share holders is that an insider was buying at near the current price. Michael Pedraja was the only individual insider to buy during the last year.

Michael Pedraja purchased 13.55k shares over the year. The average price per share was US$40.77. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Employers Holdings

Employers Holdings is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Employers Holdings

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Employers Holdings insiders own 1.6% of the company, worth about US$14m. 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 Employers Holdings Tell Us?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Employers Holdings shares, given these transactions (along with notable insider ownership of the company). 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 - Employers Holdings has 1 warning sign we think you should be aware of.

Of course Employers Holdings 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.