Investors who take an interest in Argo Group International Holdings, Ltd. (NYSE:ARGO) should definitely note that insider Samuel Liss recently paid US$33.43 per share to buy US$248k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 608%, potentially signalling some real optimism.
Argo Group International Holdings Insider Transactions Over The Last Year
Notably, that recent purchase by Samuel Liss is the biggest insider purchase of Argo Group International Holdings shares that we’ve seen in the last year. That means that even when the share price was higher than US$32.61 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it’s very important to consider the price insiders pay 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.
Happily, we note that in the last year insiders paid US$423k for 12.41k shares. On the other hand they divested 1210 shares, for US$88k. Overall, Argo Group International Holdings insiders were net buyers last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Argo Group International Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Argo Group International Holdings insiders own 3.5% of the company, worth about US$39m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
So What Do The Argo Group International Holdings Insider Transactions Indicate?
It’s certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn’t make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Argo Group International Holdings insiders are well aligned, and that they may think the share price is too low. 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. Every company has risks, and we’ve spotted 2 warning signs for Argo Group International Holdings you should know about.
Of course Argo Group International Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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