Have Globe Life Inc. (NYSE:GL) Insiders Been Selling Their Stock?

By
Simply Wall St
Published
March 12, 2021
NYSE:GL

Anyone interested in Globe Life Inc. (NYSE:GL) should probably be aware that the Executive VP, Robert Mitchell, recently divested US$301k worth of shares in the company, at an average price of US$100 each. However, the silver lining is that the sale only reduced their total holding by 4.5%, so we're hesitant to read anything much into it, on its own.

Check out our latest analysis for Globe Life

Globe Life Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Executive VP & Chief Information Officer, James McPartland, sold US$658k worth of shares at a price of US$93.26 per share. That means that even when the share price was below the current price of US$99.85, 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 28% of James McPartland's holding.

Insiders in Globe Life didn't buy any shares in the last year. 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!

insider-trading-volume
NYSE:GL Insider Trading Volume March 12th 2021

I will like Globe Life better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Globe Life Boast High Insider Ownership?

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's great to see that Globe Life insiders own 2.4% of the company, worth about US$248m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Globe Life Tell Us?

Insiders haven't bought Globe Life 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. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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. In terms of investment risks, we've identified 1 warning sign with Globe Life and understanding this should be part of your investment process.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, 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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