Have Stewart Information Services Insiders Been Selling Stock?

Some Stewart Information Services Corporation (NYSE:STC) shareholders may be a little concerned to see that the Advisor & Director, Matthew Morris, recently sold a substantial US$956k worth of stock at a price of US$74.12 per share. That sale reduced their total holding by 16% which is hardly insignificant, but far from the worst we've seen.

See our latest analysis for Stewart Information Services

The Last 12 Months Of Insider Transactions At Stewart Information Services

In fact, the recent sale by Matthew Morris was the biggest sale of Stewart Information Services shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even below the current price of US$76.37. 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. We note that the biggest single sale was only 16% of Matthew Morris's holding.

In total, Stewart Information Services 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!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership Of Stewart Information Services

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Stewart Information Services insiders own about US$37m worth of shares. That equates to 1.8% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Stewart Information Services Insider Transactions Indicate?

An insider hasn't bought Stewart Information Services stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, Stewart Information Services makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. Of course, the future is what matters most. So if you are interested in Stewart Information Services, you should check out this free report on analyst forecasts for the company.

But note: Stewart Information Services 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 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.