Have Insiders Sold Unum Group Shares Recently?

Some Unum Group (NYSE:UNM) shareholders may be a little concerned to see that the President, Richard McKenney, recently sold a substantial US$3.8m worth of stock at a price of US$75.53 per share. That's a big disposal, and it decreased their holding size by 18%, which is notable but not too bad.

Check out our latest analysis for Unum Group

The Last 12 Months Of Insider Transactions At Unum Group

Notably, that recent sale by Richard McKenney is the biggest insider sale of Unum Group shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$75.84. 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. This single sale was just 18% of Richard McKenney's stake.

Insiders in Unum Group didn't buy any shares in 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!

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Does Unum 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. We usually like to see fairly high levels of insider ownership. Unum Group insiders own about US$106m worth of shares (which is 0.8% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Unum Group Insiders?

Insiders haven't bought Unum Group 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. But it is good to see that Unum Group is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. Our analysis shows 2 warning signs for Unum Group (1 is potentially serious!) and we strongly recommend you look at them before investing.

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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.