Lead Independent Director Dirk Debbink Just Bought 2.2% More Shares In Cincinnati Financial Corporation (NASDAQ:CINF)

Investors who take an interest in Cincinnati Financial Corporation (NASDAQ:CINF) should definitely note that the Lead Independent Director, Dirk Debbink, recently paid US$106 per share to buy US$106k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 2.2%.

View our latest analysis for Cincinnati Financial

The Last 12 Months Of Insider Transactions At Cincinnati Financial

Notably, that recent purchase by Dirk Debbink is the biggest insider purchase of Cincinnati Financial shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$106). 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.

In the last twelve months Cincinnati Financial insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Cincinnati Financial insiders own about US$483m worth of shares (which is 2.9% of the company). 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 purchase is heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Cincinnati Financial. Looks promising! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - Cincinnati Financial has 1 warning sign we think you should be aware of.

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.

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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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