Yahoo Finance Insiders At Hartford Financial Services Group Sold US$2.9m In Stock, Alluding To Potential Weakness
Many The Hartford Financial Services Group, Inc. (NYSE:HIG) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Hartford Financial Services Group
The Last 12 Months Of Insider Transactions At Hartford Financial Services Group
In the last twelve months, the biggest single sale by an insider was when the Executive VP & Chief Risk Officer, Robert Paiano, sold US$1.0m worth of shares at a price of US$72.49 per share. That means that an insider was selling shares at slightly below the current price (US$103). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 33% of Robert Paiano's stake.
All up, insiders sold more shares in Hartford Financial Services Group than they bought, over the last year. 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!
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Hartford Financial Services Group Insiders Are Selling The Stock
The last quarter saw substantial insider selling of Hartford Financial Services Group shares. In total, insiders dumped US$1.3m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Insider Ownership Of Hartford Financial Services Group
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Hartford Financial Services Group insiders own 0.4% of the company, currently worth about US$134m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Hartford Financial Services Group Insiders?
Insiders sold Hartford Financial Services Group shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. But since Hartford Financial Services Group is profitable and growing, we're not too worried by this. 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. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 1 warning sign with Hartford Financial Services Group and understanding this should be part of your investment process.
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.
