As Genworth Financial, Inc.'s (NYSE:GNW)) market cap dropped by US$152m, insiders who sold US$631k worth of stock were able to offset their losses

By
Simply Wall St
Published
September 21, 2021
NYSE:GNW
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Over the past year, insiders sold US$631k worth of Genworth Financial, Inc. (NYSE:GNW) stock at an average price of US$4.21 per share allowing them to get the most out of their money. The company's market valuation decreased by US$152m after the stock price dropped 8.2% over the past week, but insiders were spared from painful losses.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Genworth Financial

Genworth Financial Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Executive VP & General Counsel, Ward Bobitz, for US$378k worth of shares, at about US$4.21 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$3.38. So it may not shed much light on insider confidence at current levels.

Insiders in Genworth Financial didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NYSE:GNW Insider Trading Volume September 21st 2021

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does Genworth 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. It appears that Genworth Financial insiders own 1.1% of the company, worth about US$20m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Genworth Financial Insiders?

The fact that there have been no Genworth Financial insider transactions recently certainly doesn't bother us. Still, the insider transactions at Genworth Financial in the last 12 months are not very heartening. But it's good to see that insiders own shares in 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 instance, we've identified 2 warning signs for Genworth Financial (1 makes us a bit uncomfortable) you should be aware of.

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. 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.
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