Some The Progressive Corporation (NYSE:PGR) shareholders may be a little concerned to see that the VP & CFO, John Sauerland, recently sold a substantial US$1.1m worth of stock at a price of US$91.40 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 2.8%.
Progressive Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Independent Director, Stuart Burgdoerfer, sold US$1.7m worth of shares at a price of US$91.85 per share. That means that an insider was selling shares at around the current price of US$90.75. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Insiders in Progressive didn't buy any shares in 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!
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Insider Ownership of Progressive
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. It's great to see that Progressive insiders own 0.3% of the company, worth about US$182m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Progressive Tell Us?
An insider sold Progressive shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But since Progressive is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 2 warning signs for Progressive (1 can't be ignored!) that we believe deserve your full attention.
Of course Progressive 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, but not derivative transactions.
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