Some Essent Group Ltd. (NYSE:ESNT) shareholders may be a little concerned to see that the Founder, Mark Casale, recently sold a substantial US$3.5m worth of stock at a price of US$71.09 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 2.1%.
Essent Group Insider Transactions Over The Last Year
In fact, the recent sale by Founder Mark Casale was not their only sale of Essent Group shares this year. Earlier in the year, they fetched US$65.23 per share in a -US$6.7m sale. So we know that an insider sold shares at around the present share price of US$64.68. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
In the last year Essent Group insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Check out our latest analysis for Essent Group
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Insider Ownership
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. Essent Group insiders own 3.6% of the company, currently worth about US$209m 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 Essent Group Insiders?
Insiders sold Essent Group shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But since Essent Group is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 2 warning signs for Essent Group (of which 1 makes us a bit uncomfortable!) you should know about.
But note: Essent Group 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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