Have Insiders Sold Everest Re Group, Ltd. (NYSE:RE) Shares Recently?

By
Simply Wall St
Published
November 09, 2020
NYSE:RE

Anyone interested in Everest Re Group, Ltd. (NYSE:RE) should probably be aware that the Independent Director, John Weber, recently divested US$108k worth of shares in the company, at an average price of US$215 each. On the bright side, that sale was only 3.5% of their holding, so we doubt it's very meaningful, on its own.

Check out our latest analysis for Everest Re Group

Everest Re Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Chairman of the Board, Joseph Taranto, for US$3.3m worth of shares, at about US$174 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$211. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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 5.8% of Joseph Taranto's stake.

Happily, we note that in the last year insiders paid US$600k for 2.50k shares. But they sold 22.75k shares for US$4.1m. In total, Everest Re Group insiders sold more than they bought 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!

insider-trading-volume
NYSE:RE Insider Trading Volume November 9th 2020

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Everest Re Group 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Everest Re Group insiders own about US$144m worth of shares (which is 1.7% 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 Do The Everest Re Group Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But it is good to see that Everest Re Group is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 1 warning sign for Everest Re Group that deserve your attention before buying any shares.

But note: Everest Re Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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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This article by Simply Wall St is general in nature. 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.
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