We note that a Lincoln National Corporation (NYSE:LNC) insider, John Kennedy, recently sold US$97k worth of stock for US$67.14 per share. It might not be a huge sale, but it did reduce their holding size 11%, hardly encouraging.
The Last 12 Months Of Insider Transactions At Lincoln National
The insider, Wilford Fuller, made the biggest insider sale in the last 12 months. That single transaction was for US$1.3m worth of shares at a price of US$52.77 each. That means that an insider was selling shares at slightly below the current price (US$59.43). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 12% of Wilford Fuller's holding.
Lincoln National insiders didn't buy any shares over the last year. 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!
I will like Lincoln National better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership of Lincoln National
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Lincoln National insiders own about US$676m worth of shares (which is 6.0% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Lincoln National Insider Transactions Indicate?
An insider sold Lincoln National shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Lincoln National is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Lincoln National.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.
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