Anyone interested in White Mountains Insurance Group, Ltd. (NYSE:WTM) should probably be aware that the Independent Director, Philip Gelston, recently divested US$338k worth of shares in the company, at an average price of US$2,049 each. However, the silver lining is that the sale only reduced their total holding by 9.5%, so we're hesitant to read anything much into it, on its own.
Notably, that recent sale by Philip Gelston is the biggest insider sale of White Mountains Insurance Group shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$2,040. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. 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).
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!
See our latest analysis for White Mountains Insurance 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.
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. White Mountains Insurance Group insiders own 3.3% of the company, currently worth about US$168m 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.
An insider hasn't bought White Mountains Insurance Group stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. 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 4 warning signs for White Mountains Insurance Group (of which 1 makes us a bit uncomfortable!) you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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