RenaissanceRe Holdings Insiders Sold US$4.9m Of Shares Suggesting Hesitancy

Over the past year, many RenaissanceRe Holdings Ltd. (NYSE:RNR) insiders sold a significant stake in the company which may have piqued investors' interest. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.

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.

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RenaissanceRe Holdings Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Senior VP & Chief Accounting Officer, James Fraser, sold US$3.5m worth of shares at a price of US$251 per share. So we know that an insider sold shares at around the present share price of US$246. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Insiders in RenaissanceRe Holdings didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for RenaissanceRe Holdings

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Insiders At RenaissanceRe Holdings Have Sold Stock Recently

The last three months saw significant insider selling at RenaissanceRe Holdings. Specifically, Independent Director David Bushnell ditched US$1.4m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership Of RenaissanceRe Holdings

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. I reckon it's a good sign if insiders own a significant number of shares in the company. RenaissanceRe Holdings insiders own about US$251m worth of shares (which is 2.2% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At RenaissanceRe Holdings Tell Us?

An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. 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 RenaissanceRe Holdings. Every company has risks, and we've spotted 3 warning signs for RenaissanceRe Holdings (of which 1 is a bit concerning!) you should know about.

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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.