Even if it's not a huge purchase, we think it was good to see that William Becker, the Independent Chairman of the Board of QBE Insurance Group Limited (ASX:QBE) recently shelled out AU$68k to buy stock, at AU$12.26 per share. That might not be a big purchase but it only increased their holding by 3.7%, and could be interpreted as a good sign.
The Last 12 Months Of Insider Transactions At QBE Insurance Group
Notably, that recent purchase by William Becker is the biggest insider purchase of QBE Insurance Group shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of AU$10.72. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
QBE Insurance Group insiders may have bought shares in the last year, but they didn't sell any. 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!
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.
Does QBE Insurance Group Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.2% of QBE Insurance Group shares, worth about AU$21m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About QBE Insurance Group Insiders?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest QBE Insurance Group insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing QBE Insurance Group. You'd be interested to know, that we found 2 warning signs for QBE Insurance Group and we suggest you have a look.
Of course QBE Insurance Group 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 email@example.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.
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