The Progressive Corporation (NYSE:PGR) insiders sold US$3.1m worth of stock last year which shareholders may not want to overlook

While it’s been a great week for The Progressive Corporation (NYSE:PGR) shareholders after stock gained 3.8%, they should consider it with a grain of salt. In spite of the relatively cheap prices, insiders made the decision to sell US$3.1m worth of stock in the last 12 months. This could be a warning indicator of vulnerabilities in the future.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Progressive

Progressive Insider Transactions Over The Last Year

The President of Personal Lines, Patrick Callahan, made the biggest insider sale in the last 12 months. That single transaction was for US$2.4m worth of shares at a price of US$126 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$140. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was 59% of Patrick Callahan's holding.

In the last year Progressive insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Progressive better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insiders At Progressive Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at Progressive. Specifically, VP, Chief Accounting Officer & Assistant Secretary Mariann Marshall ditched US$65k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership Of Progressive

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Progressive insiders own about US$258m worth of shares (which is 0.3% 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 Progressive Insiders?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Progressive. For example - Progressive has 2 warning signs we think you should be aware of.

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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