We wouldn't blame Assurant, Inc. (NYSE:AIZ) shareholders if they were a little worried about the fact that Biju Nair, a company insider, recently netted about US$628k selling shares at an average price of US$209. That's a big disposal, and it decreased their holding size by 13%, which is notable but not too bad.
Assurant Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Executive VP & President of Global Housing, Michael Campbell, sold US$1.9m worth of shares at a price of US$173 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$213. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 42% of Michael Campbell's stake.
In the last year Assurant insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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Insider Ownership Of Assurant
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Assurant insiders own about US$54m worth of shares. That equates to 0.5% of the company. 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 Assurant Insider Transactions Indicate?
Insiders haven't bought Assurant stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But since Assurant 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'd practice some caution before buying! While it's good to be aware of 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 Assurant 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 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.
