Michael Todman Is The Independent Director of Prudential Financial, Inc. (NYSE:PRU) And They Just Picked Up 556% More Shares
Investors who take an interest in Prudential Financial, Inc. (NYSE:PRU) should definitely note that the Independent Director, Michael Todman, recently paid US$71.08 per share to buy US$178k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 556%, potentially signalling some real optimism.
See our latest analysis for Prudential Financial
The Last 12 Months Of Insider Transactions At Prudential Financial
In the last twelve months, the biggest single sale by an insider was when the insider, Nicholas Silitch, sold US$723k worth of shares at a price of US$88.17 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$70.59). So it may not tell us anything about how insiders feel about the current share price.
In the last twelve months insiders purchased 16.58k shares for US$1.4m. On the other hand they divested 10.22k shares, for US$912k. In the last twelve months there was more buying than selling by Prudential Financial insiders. 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!
Prudential 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 Prudential Financial
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Insiders own 0.2% of Prudential Financial shares, worth about US$60m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Prudential Financial Insiders?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Prudential Financial insiders are well aligned, and that they may think the share price is too low. 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. To help with this, we've discovered 3 warning signs (1 shouldn't be ignored!) that you ought to be aware of before buying any shares in Prudential Financial.
But note: Prudential Financial 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.
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. 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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