Don't Ignore The Insider Selling In Primerica

We wouldn't blame Primerica, Inc. (NYSE:PRI) shareholders if they were a little worried about the fact that Glenn Williams, the CEO & Director recently netted about US$758k selling shares at an average price of US$253. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 6.2%.

Check out our latest analysis for Primerica

The Last 12 Months Of Insider Transactions At Primerica

Notably, that recent sale by CEO & Director Glenn Williams was not the only time they sold Primerica shares this year. They previously made an even bigger sale of -US$986k worth of shares at a price of US$247 per share. That means that an insider was selling shares at slightly below the current price (US$253). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 8.6% of Glenn Williams's holding.

Primerica insiders didn't buy any shares over the last year. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of Primerica

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. It appears that Primerica insiders own 0.5% of the company, worth about US$46m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Primerica Insider Transactions Indicate?

Insiders haven't bought Primerica stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Primerica. At Simply Wall St, we found 3 warning signs for Primerica that deserve your attention before buying any shares.

Of course Primerica 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.