Yahoo Finance Positive Signs As Multiple Insiders Buy Stewart Information Services Stock \
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Stewart Information Services Corporation (NYSE:STC), that sends out a positive message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Stewart Information Services
Stewart Information Services Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Group President of Direct Operations Steven Lessack bought US$199k worth of shares at a price of US$55.20 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$42.05). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Stewart Information Services insiders may have bought shares in the last year, but they didn't sell any. They paid about US$47.55 on average. I'd consider this a positive as it suggests insiders see value at around the current price. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insiders At Stewart Information Services Have Bought Stock Recently
It's good to see that Stewart Information Services insiders have made notable investments in the company's shares. We can see that CEO & Director Frederick Eppinger paid US$113k for shares in the company. No-one sold. This makes one think the business has some good points.
Insider Ownership Of Stewart Information Services
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Stewart Information Services insiders own about US$21m worth of shares. That equates to 1.8% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Stewart Information Services Insider Transactions Indicate?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Stewart Information Services shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Stewart Information Services. Every company has risks, and we've spotted 1 warning sign for Stewart Information Services you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.
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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.
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