We wouldn't blame The Travelers Companies, Inc. (NYSE:TRV) shareholders if they were a little worried about the fact that Maria Olivo, a company insider, recently netted about US$6.0m selling shares at an average price of US$398. That sale reduced their total holding by 13% which is hardly insignificant, but far from the worst we've seen.
Travelers Companies Insider Transactions Over The Last Year
Notably, that recent sale by Maria Olivo is the biggest insider sale of Travelers Companies shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$398. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
Travelers Companies insiders didn't buy any shares over the last year. 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!
Check out our latest analysis for Travelers Companies
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 Travelers Companies 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Travelers Companies insiders own about US$398m worth of shares (which is 0.5% of the company). 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 Travelers Companies Insiders?
An insider sold Travelers Companies shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. On the plus side, Travelers Companies makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Travelers Companies. For instance, we've identified 2 warning signs for Travelers Companies (1 is potentially serious) you should be aware of.
But note: Travelers Companies may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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