This Insider Has Just Sold Shares In Primerica

Some Primerica, Inc. (NYSE:PRI) shareholders may be a little concerned to see that the CEO & Director, Glenn Williams, recently sold a substantial US$904k worth of stock at a price of US$301 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 7.6%.

Check out our latest analysis for Primerica

Primerica Insider Transactions Over The Last Year

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$300). 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. 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. This single sale was just 8.6% of Glenn Williams's stake.

In the last year Primerica insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Does Primerica Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Primerica insiders own about US$52m worth of shares. That equates to 0.5% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Primerica Insider Transactions Indicate?

Insiders sold Primerica shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Primerica is growing earnings. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Primerica. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Primerica.

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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.