Viewing insider transactions for Mercury General Corporation's (NYSE:MCY ) over the last year, we see that insiders were net sellers. This means that a larger number of shares were sold by insiders in relation to shares purchased.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Mercury General Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Executive Chairman of the Board, George Joseph, sold US$2.2m worth of shares at a price of US$65.06 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$51.02. So it may not tell us anything about how insiders feel about the current share price. George Joseph was the only individual insider to sell shares in the last twelve months.
George Joseph divested 45.00k shares over the last 12 months at an average price of US$65.24. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insiders at Mercury General Have Bought Stock Recently
We saw some Mercury General insider buying shares in the last three months. Independent Director Joshua Little shelled out US$24k for shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Mercury General insiders own about US$1.5b worth of shares (which is 52% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Mercury General Insiders?
We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. While we gain confidence from high insider ownership of Mercury General, we can't say the same about their transactions in the last year, in the absence of further purchases. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Mercury General. In terms of investment risks, we've identified 1 warning sign with Mercury General and understanding it 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.
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.