Even if it's not a huge purchase, we think it was good to see that Michael Smith, the VP & Chief Financial Officer of ICC Holdings, Inc. (NASDAQ:ICCH) recently shelled out US$68k to buy stock, at US$13.68 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 15%.
The Last 12 Months Of Insider Transactions At ICC Holdings
In fact, the recent purchase by VP & Chief Financial Officer Michael Smith was not their only acquisition of ICC Holdings shares this year. They previously made an even bigger purchase of US$140k worth of shares at a price of US$14.00 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$13.75). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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.
In the last twelve months insiders purchased 18311.5 shares for US$254k. But they sold 9322 for US$126k. In total, ICC Holdings insiders bought more than they sold over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
ICC Holdings 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 ICC Holdings
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that ICC Holdings insiders own 45% of the company, worth about US$19m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At ICC Holdings Tell Us?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about ICC Holdings. Looks promising! To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.
But note: ICC Holdings 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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.