We wouldn't blame Stewart Information Services Corporation (NYSE:STC) shareholders if they were a little worried about the fact that Matthew Morris, the Advisor & Director recently netted about US$956k selling shares at an average price of US$74.12. That sale reduced their total holding by 16% which is hardly insignificant, but far from the worst we've seen.
Stewart Information Services Insider Transactions Over The Last Year
Notably, that recent sale by Matthew Morris is the biggest insider sale of Stewart Information Services shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of US$76.37. 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. We note that the biggest single sale was only 16% of Matthew Morris's holding.
All up, insiders sold more shares in Stewart Information Services than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
I will like Stewart Information Services 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.
Insider Ownership Of Stewart Information Services
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Stewart Information Services insiders own about US$37m worth of shares. That equates to 1.8% 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 Stewart Information Services Insider Transactions Indicate?
An insider sold Stewart Information Services shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since Stewart Information Services is profitable and growing, we're not too worried by this. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Stewart Information Services.
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.
