Hamilton Insurance Group Insiders Sold US$1.5m Of Shares Suggesting Hesitancy

Hamilton Insurance Group, Ltd. (NYSE:HG) shareholders may have reason to be concerned, as several insiders sold their shares over the past year. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, if numerous insiders are selling, shareholders should investigate more.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Hamilton Insurance Group

The Last 12 Months Of Insider Transactions At Hamilton Insurance Group

In the last twelve months, the biggest single sale by an insider was when the Independent Director, William Freda, sold US$446k worth of shares at a price of US$15.00 per share. That means that an insider was selling shares at slightly below the current price (US$17.80). 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. It is worth noting that this sale was only 10% of William Freda's holding.

In the last twelve months insiders purchased 47.80k shares for US$756k. But they sold 99.00k shares for US$1.5m. All up, insiders sold more shares in Hamilton Insurance Group than they bought, over 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!

I will like Hamilton Insurance Group better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Hamilton Insurance Group Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Hamilton Insurance Group insiders own about US$49m worth of shares. That equates to 2.7% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Hamilton Insurance Group Insiders?

The fact that there have been no Hamilton Insurance Group insider transactions recently certainly doesn't bother us. Our analysis of Hamilton Insurance Group insider transactions leaves us cautious. But we do like the fact that insiders own a fair chunk of the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Hamilton Insurance Group. At Simply Wall St, we found 1 warning sign for Hamilton Insurance Group that deserve your attention before buying any shares.

Of course Hamilton Insurance Group 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.