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Many Chubb Limited (NYSE:CB) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Chubb
The Last 12 Months Of Insider Transactions At Chubb
Over the last year, we can see that the biggest insider sale was by the Executive Chairman & CEO, Evan Greenberg, for US$13m worth of shares, at about US$210 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$222. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 7.9% of Evan Greenberg's holding.
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 want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Chubb Insiders Are Selling The Stock
The last quarter saw substantial insider selling of Chubb shares. Specifically, insiders ditched US$11m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Insider Ownership Of Chubb
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. It's great to see that Chubb insiders own 0.5% of the company, worth about US$433m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.