We'd be surprised if Safety Insurance Group, Inc. (NASDAQ:SAFT) shareholders haven't noticed that an insider, Ann McKeown, recently sold US$268k worth of stock at US$79.01 per share. That sale was 14% of their holding, so it does make us raise an eyebrow.
Safety Insurance Group Insider Transactions Over The Last Year
The Vice President of Underwriting, James Berry, made the biggest insider sale in the last 12 months. That single transaction was for US$324k worth of shares at a price of US$82.11 each. So we know that an insider sold shares at around the present share price of US$78.71. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
Happily, we note that in the last year insiders paid US$211k for 2.83k shares. On the other hand they divested 12.36k shares, for US$997k. Over the last year we saw more insider selling of Safety Insurance Group shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!NasdaqGS:SAFT Insider Trading Volume September 25th 2021
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Does Safety Insurance 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. It appears that Safety Insurance Group insiders own 5.4% of the company, worth about US$63m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Safety Insurance Group Insider Transactions Indicate?
An insider sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. But since Safety Insurance Group is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 1 warning sign for Safety Insurance Group you should be aware of.
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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. 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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