In the last year, many Globe Life Inc. (NYSE:GL) insiders sold a substantial stake in the company which may have sparked shareholders' attention. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Globe Life
Over the last year, we can see that the biggest insider sale was by the Executive VP, Robert Mitchell, for US$1.8m worth of shares, at about US$112 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$82.44). So it may not tell us anything about how insiders feel about the current share price.
In the last twelve months insiders purchased 20.40k shares for US$1.7m. But insiders sold 19.54k shares worth US$2.1m. All up, insiders sold more shares in Globe Life than they bought, over the last year. 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!
I will like Globe Life better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Globe Life Insiders Bought Stock Recently
Over the last three months, we've seen significantly more insider buying, than insider selling, at Globe Life. Insiders spent US$1.7m on shares. On the other hand, insider Rebecca Zorn netted US$179k by selling. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.
Does Globe Life Boast High Insider Ownership?
Many investors like to check how much of a company is owned by 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. Globe Life insiders own about US$178m worth of shares (which is 2.4% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Globe Life Insiders?
The recent insider purchases are heartening. However, the longer term transactions are not so encouraging. The recent buying by some insiders , along with high insider ownership, suggest that Globe Life insiders are fairly aligned, and optimistic. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Globe Life. Our analysis shows 2 warning signs for Globe Life (1 is concerning!) and we strongly recommend you look at these before investing.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com