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In the last year, many Chubb Limited (NYSE:CB) insiders sold a substantial stake in the company which may have sparked shareholders' attention. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Chubb
The Last 12 Months Of Insider Transactions At Chubb
The Executive VP & Chief Investment Officer of Chubb Group, Timothy Boroughs, made the biggest insider sale in the last 12 months. That single transaction was for US$5.2m worth of shares at a price of US$210 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$188. So it may not shed much light on insider confidence at current levels.
Chubb 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!
For those who like to find winning investments this free list of growing 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Chubb insiders own 0.6% of the company, currently worth about US$416m 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 Chubb Insiders?
It doesn't really mean much that no insider has traded Chubb shares in the last quarter. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Chubb insider transactions don't fill us with confidence. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Chubb. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Chubb.