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Chairman & CEO Jonathan Abram Just Bought 3.5% More Shares In James River Group Holdings, Ltd. (NASDAQ:JRVR)

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Simply Wall St
·3 min read
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Investors who take an interest in James River Group Holdings, Ltd. (NASDAQ:JRVR) should definitely note that the Chairman & CEO, Jonathan Abram, recently paid US$31.86 per share to buy US$490k worth of the stock. Although the purchase only increased their holding by 3.5%, it is still a solid purchase in our view.

See our latest analysis for James River Group Holdings

The Last 12 Months Of Insider Transactions At James River Group Holdings

Notably, that recent purchase by Chairman & CEO Jonathan Abram was not the only time they bought James River Group Holdings shares this year. They previously made an even bigger purchase of US$506k worth of shares at a price of US$35.46 per share. That means that even when the share price was higher than US$33.51 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

While James River Group Holdings insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NasdaqGS:JRVR Recent Insider Trading May 11th 2020
NasdaqGS:JRVR Recent Insider Trading May 11th 2020

James River Group Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of James River Group Holdings

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 3.2% of James River Group Holdings shares, worth about US$33m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At James River Group Holdings Tell Us?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of James River Group Holdings we think they are probably pretty confident of a bright future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 3 warning signs for James River Group Holdings you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.

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. Thank you for reading.