Even if it's not a huge purchase, we think it was good to see that Michael Hogan, the Independent Director of American Coastal Insurance Corporation (NASDAQ:ACIC) recently shelled out US$91k to buy stock, at US$11.37 per share. However, it only increased their shares held by 2.3%, and it wasn't a huge purchase by absolute value, either.

The Last 12 Months Of Insider Transactions At American Coastal Insurance

Notably, that recent purchase by Michael Hogan is the biggest insider purchase of American Coastal Insurance shares that we've seen in the last year. That implies that an insider found the current price of US$11.44 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.

Happily, we note that in the last year insiders paid US$168k for 16.57k shares. On the other hand they divested 5.25k shares, for US$59k. In the last twelve months there was more buying than selling by American Coastal Insurance insiders. Their average price was about US$10.11. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

American Coastal Insurance is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does American Coastal Insurance Boast High Insider Ownership?

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. American Coastal Insurance insiders own about US$254m worth of shares (which is 49% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About American Coastal Insurance Insiders?

We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, American Coastal Insurance insiders feel good about the company's future. 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of American Coastal Insurance.

Of course American Coastal Insurance 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 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.