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Selective Insurance Group, Inc. (NASDAQ:SIGI) shareholders (or potential shareholders) will be happy to see that the Non-Independent Director, William Rue, recently bought a whopping US$1.3m worth of stock, at a price of US$52.45. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 7.5%.
Selective Insurance Group Insider Transactions Over The Last Year
In fact, the recent purchase by William Rue was the biggest purchase of Selective Insurance Group shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than US$52.14 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. We note that William Rue was also the biggest seller.
Over the last year, we can see that insiders have bought 27.00k shares worth US$1.4m. But they sold 7795 shares for US$605k. In total, Selective Insurance Group insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by 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!
Selective Insurance Group 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.
Does Selective Insurance Group Boast High Insider Ownership?
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. Selective Insurance Group insiders own about US$61m worth of shares. That equates to 2.0% of the company. 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 Selective Insurance Group Insiders?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Selective Insurance Group shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Selective Insurance Group. Case in point: We've spotted 1 warning sign for Selective Insurance Group you should be aware of.
Of course Selective Insurance Group 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. 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. Thank you for reading.