Positive Signs As Multiple Insiders Buy Markel Group Stock

It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Markel Group Inc.'s (NYSE:MKL) case, it's fantastic news for shareholders.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Markel Group

The Last 12 Months Of Insider Transactions At Markel Group

The Independent Director, Greta Harris, made the biggest insider sale in the last 12 months. That single transaction was for US$198k worth of shares at a price of US$1,622 each. That means that even when the share price was below the current price of US$1,726, an insider wanted to cash in some shares. 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. 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 16% of Greta Harris's holding. Greta Harris was the only individual insider to sell shares in the last twelve months.

In the last twelve months insiders purchased 332.00 shares for US$486k. But they sold 122.00 shares for US$198k. In total, Markel Group 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!

Markel Group is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders At Markel Group Have Bought Stock Recently

It's good to see that Markel Group insiders have made notable investments in the company's shares. Specifically, Chief Investment Officer Thomas Gayner bought US$155k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.

Insider Ownership

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Markel Group insiders own about US$406m worth of shares (which is 1.8% 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 Markel Group Insiders?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Markel Group insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that Markel Group has 1 warning sign and it would be unwise to ignore this.

Of course Markel 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.