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Investors who take an interest in American Financial Group, Inc. (NYSE:AFG) should definitely note that the Senior VP & General Counsel, Vito Peraino, recently paid US$96.39 per share to buy US$241k 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 2.6%.
American Financial Group Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Co-President Stephen Lindner for US$758k worth of shares, at about US$63.20 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$100. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
In the last twelve months insiders purchased 24.79k shares for US$1.6m. But insiders sold 2.80k shares worth US$277k. In the last twelve months there was more buying than selling by American Financial Group insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does American Financial Group Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. American Financial Group insiders own 19% of the company, currently worth about US$1.7b based on the recent share price. 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 American Financial Group Insiders?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about American Financial Group. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing American Financial Group. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of American Financial Group.
Of course American Financial 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.
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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