Have any insiders of Safety Insurance Group, Inc. (NASDAQ: SAFT) sold their shares?
We would be surprised if Security Assurance Group, Inc. (NASDAQ: SAFT) Shareholders didn’t notice that an insider, Ann McKeown, recently sold US $ 268,000 worth of shares at US $ 79.01 per share. This sale represented 14% of their participation, so that raises our eyebrows.
Insider trading of the Security Insurance Group in the past year
Underwriting VP James Berry had the biggest insider sale in the past 12 months. This single transaction involved shares valued at US $ 324,000 at a price of US $ 82.11 each. So we know that an insider sold shares around the current price of US $ 78.71. We generally don’t like to see insider sales, but the lower the selling price, the more it concerns us. In this case, the big sale took place around the current price, so it’s not too bad (but it’s still not positive).
Fortunately, we note that over the past year, insiders paid US $ 211,000 for 2.83,000 shares. On the other hand, they sold 12.36,000 shares for US $ 997,000. Over the past year, we’ve seen more insider sales of Safety Insurance Group shares than purchases. The chart below shows insider trading (by companies and individuals) over the past year. If you click on the chart, you can see all of the individual trades including the stock price, individual and date!
NasdaqGS: SAFT Insider Trading Volume September 25, 2021
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Does Safety Insurance Group pride itself on strong insider ownership?
Another way to test the alignment between a company’s executives and other shareholders is to look at how many shares they own. We generally like to see fairly high levels of insider ownership. It appears that insiders of the Safety Insurance Group own 5.4% of the company, worth around US $ 63 million. This level of insider ownership is good but just short of being particularly noteworthy. It certainly suggests a reasonable degree of alignment.
So what do the Security Assurance Group’s insider trading indicate?
An insider recently sold stocks, but they haven’t bought any. With zooming out, the longer term image doesn’t give us much comfort. But since Groupe Assurance Sécurité is profitable and growing, this does not worry us too much. Insiders own stocks, but we remain fairly cautious given the sales history. We are in no rush to buy! While we love to know what’s going on with insider ownership and trading, we also make sure to consider the risks a stock faces before making any investment decisions. Concrete example: we have spotted 1 warning sign for Safety Insurance Group you must be aware.
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For the purposes of this article, insiders are the persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
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