We'd be surprised if Aon plc (NYSE:AON) shareholders haven't noticed that the Chief Administrative Officer, Lisa Stevens, recently sold US$494k worth of stock at US$388 per share. That sale was 14% of their holding, so it does make us raise an eyebrow.

The Last 12 Months Of Insider Transactions At Aon

In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Chairman of the Board Lester Knight bought US$15m worth of shares at a price of US$302 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$388. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Happily, we note that in the last year insiders paid US$18m for 60.73k shares. But they sold 82.69k shares for US$26m. Over the last year we saw more insider selling of Aon shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Does Aon Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Aon insiders own 1.2% of the company, worth about US$974m. 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 Aon Insiders?

Insiders haven't bought Aon stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Aon. Be aware that Aon is showing 2 warning signs in our investment analysis, and 1 of those can't be ignored...

Of course Aon 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.