Those following along with Cigna Corporation (NYSE:CI) will no doubt be intrigued by the recent purchase of shares by Eric Foss, Independent Director of the company, who spent a stonking US$2.0m on stock at an average price of US$195. That increased their holding by a full 66%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.
Cigna Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by President David Cordani for US$5.0m worth of shares, at about US$155 per share. Even though the purchase was made at a significantly lower price than the recent price (US$196), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
In the last twelve months insiders purchased 44709 shares for US$7.4m. On the other hand they divested 19220 shares, for US$3.6m. In the last twelve months there was more buying than selling by Cigna insiders. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Cigna is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
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. Cigna insiders own 0.3% of the company, currently worth about US$202m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Cigna Insiders?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Cigna insiders are well aligned, and quite possibly think the share price is too low. Nice! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Cigna.
But note: Cigna 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.
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