We wouldn't blame Mercury General Corporation (NYSE:MCY) shareholders if they were a little worried about the fact that George Joseph, the Executive Chairman of the Board recently netted about US$2.2m selling shares at an average price of US$65.06. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 0.2%.
Mercury General Insider Transactions Over The Last Year
In fact, the recent sale by Executive Chairman of the Board George Joseph was not their only trade of Mercury General shares this year. Earlier in the year, they spent US$6.0m to buy shares at US$37.80 per share. We do like to see buying, but this purchase was made at well below the current price of US$59.88. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Over the last year, we can see that insiders have bought 734.20k shares worth US$27m. But insiders sold 45.00k shares worth US$2.9m. In total, Mercury General insiders bought more than they sold 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 want to know exactly who sold, for how much, and when, simply click on the graph below!
Mercury General is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Mercury General
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Mercury General insiders own about US$1.7b worth of shares (which is 51% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Mercury General Insiders?
An insider sold Mercury General shares recently, but they didn't buy any. In contrast, they appear keener if you look at the last twelve months. And insider ownership remains quite considerable. So we're not too bothered by recent selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Mercury General. When we did our research, we found 2 warning signs for Mercury General (1 makes us a bit uncomfortable!) that we believe deserve your full attention.
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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