The Progressive Corporation (NYSE:PGR) insiders sold US$4.8m worth of stock suggesting impending weakness.

By
Simply Wall St
Published
April 14, 2022
NYSE:PGR
Source: Shutterstock

In the last year, many The Progressive Corporation (NYSE:PGR) insiders sold a substantial stake in the company which may have sparked shareholders' attention. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Progressive

The Last 12 Months Of Insider Transactions At Progressive

The insider, M. Charney, made the biggest insider sale in the last 12 months. That single transaction was for US$1.4m worth of shares at a price of US$95.89 each. That means that an insider was selling shares at slightly below the current price (US$114). 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 20% of M. Charney's holding.

Progressive insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NYSE:PGR Insider Trading Volume April 14th 2022

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Progressive Boast High 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. We usually like to see fairly high levels of insider ownership. Progressive insiders own 0.3% of the company, currently worth about US$208m based on the recent share price. 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 Progressive Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Progressive insiders selling. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Progressive.

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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