Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of AXIS Capital Holdings Limited (NYSE:AXS), that sends out a positive message to the company's shareholders.

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 AXIS Capital Holdings

Over the last year, we can see that the biggest insider sale was by the Independent Director, Henry Smith, for US$526k worth of shares, at about US$72.90 per share. That means that even when the share price was below the current price of US$88.77, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 13% of Henry Smith's holding. Henry Smith was the only individual insider to sell shares in the last twelve months.

Happily, we note that in the last year insiders paid US$854k for 13.43k shares. But they sold 7.22k shares for US$526k. In total, AXIS Capital Holdings insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of AXIS Capital Holdings

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that AXIS Capital Holdings insiders own 0.6% of the company, worth about US$48m. 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 AXIS Capital Holdings Insider Transactions Indicate?

It doesn't really mean much that no insider has traded AXIS Capital Holdings shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in AXIS Capital Holdings and we see no evidence to suggest they are worried about the future. Of course, the future is what matters most. So if you are interested in AXIS Capital Holdings, you should check out this free report on analyst forecasts for the company.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.