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Insider Buying: The Cincinnati Financial Corporation (NASDAQ:CINF) Independent Director Just Bought 2.0% More Shares

·3 min read

Even if it's not a huge purchase, we think it was good to see that David Osborn, the Independent Director of Cincinnati Financial Corporation (NASDAQ:CINF) recently shelled out US$98k to buy stock, at US$97.69 per share. However, it only increased their shares held by 2.0%, and it wasn't a huge purchase by absolute value, either.

See our latest analysis for Cincinnati Financial

Cincinnati Financial Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Director Dirk Debbink for US$100k worth of shares, at about US$117 per share. That means that an insider was happy to buy shares at above the current price of US$96.70. 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months Cincinnati Financial insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and 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!

insider-trading-volume
insider-trading-volume

Cincinnati Financial 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.

Insider Ownership Of Cincinnati Financial

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Cincinnati Financial insiders own 3.0% of the company, worth about US$469m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Cincinnati Financial 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 Cincinnati Financial insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! 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. You'd be interested to know, that we found 1 warning sign for Cincinnati Financial and we suggest you have a look.

Of course Cincinnati Financial 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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