U.S. Markets open in 1 hr 44 mins

Don't Ignore The Fact That This Insider Just Sold Some Shares In The Progressive Corporation (NYSE:PGR)

Simply Wall St

We'd be surprised if The Progressive Corporation (NYSE:PGR) shareholders haven't noticed that the Chief Information Officer, Steven Broz, recently sold US$354k worth of stock at US$70.84 per share. That sale was 17% of their holding, so it does make us raise an eyebrow.

See our latest analysis for Progressive

The Last 12 Months Of Insider Transactions At Progressive

Over the last year, we can see that the biggest insider sale was by the Chief Investment Officer, William Cody, for US$3.6m worth of shares, at about US$72.93 per share. That means that an insider was selling shares at around the current price of US$68.77. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

In total, Progressive insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NYSE:PGR Recent Insider Trading, October 23rd 2019

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 Progressive

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Progressive insiders own 0.7% of the company, currently worth about US$262m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Progressive Insider Transactions Indicate?

Insiders haven't bought Progressive 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, Progressive makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Progressive.

But note: Progressive 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, 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 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. Thank you for reading.