We wouldn't blame Ameriprise Financial, Inc. (NYSE:AMP) shareholders if they were a little worried about the fact that John Woerner, a company insider, recently netted about US$998k selling shares at an average price of US$154. That's a big dump, and it decreased their holding size by 19%, which is notable but not too bad.
Ameriprise Financial Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Executive VP & Global Chief Investment Officer, Colin Moore, sold US$3.2m worth of shares at a price of US$134 per share. That means that an insider was selling shares at slightly below the current price (US$151). 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. 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. It is worth noting that this sale was only 32% of Colin Moore's holding.
Over the last year, we note insiders sold 35669 shares worth US$5.0m. In the last year Ameriprise Financial insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Ameriprise Financial
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It appears that Ameriprise Financial insiders own 0.4% of the company, worth about US$82m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Ameriprise Financial Tell Us?
An insider sold Ameriprise Financial shares recently, but they didn't buy any. And even if we look to the last year, we didn't see any purchases. But it is good to see that Ameriprise Financial is growing earnings. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Ameriprise Financial.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.