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The Independent Chairman of the Board of Equitable Holdings, Inc. (NYSE:EQH), Ramon de Oliveira-Cezar, Just Bought 61% More Shares

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Investors who take an interest in Equitable Holdings, Inc. (NYSE:EQH) should definitely note that the Independent Chairman of the Board, Ramon de Oliveira-Cezar, recently paid US$19.36 per share to buy US$250k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 61%, potentially signalling some real optimism.

Check out our latest analysis for Equitable Holdings

Equitable Holdings Insider Transactions Over The Last Year

President Mark Pearson made the biggest insider purchase in the last 12 months. That single transaction was for US$997k worth of shares at a price of US$20.34 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$15.38). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. 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.

Happily, we note that in the last year insiders paid US$1.6m for 84.63k shares. But they sold 2006 shares for US$49k. In total, Equitable Holdings insiders bought more than they sold over the last year. 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!

NYSE:EQH Recent Insider Trading, March 10th 2020
NYSE:EQH Recent Insider Trading, March 10th 2020

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.2% of Equitable Holdings shares, worth about US$11m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Equitable Holdings Insider Transactions Indicate?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Equitable Holdings we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Equitable Holdings. For example - Equitable Holdings has 2 warning signs we think you should be aware of.

Of course Equitable Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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.