Over the past year, many Assured Guaranty Ltd. (NYSE:AGO) insiders sold a significant stake in the company which may have piqued investors' interest. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. 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.

View our latest analysis for Assured Guaranty

Assured Guaranty Insider Transactions Over The Last Year

The Deputy Chairman, Dominic Frederico, made the biggest insider sale in the last 12 months. That single transaction was for US$4.9m worth of shares at a price of US$57.77 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$51.98. So it is hard to draw any strong conclusion from it.

In total, Assured Guaranty insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Assured Guaranty Insiders Are Selling The Stock

Over the last three months, we've seen notably more insider selling, than insider buying, at Assured Guaranty. We note Deputy Chairman Dominic Frederico cashed in US$4.9m worth of shares. On the other hand we note Chief Investment Officer & Head of Asset Management David Buzen bought US$293k worth of shares , as previously mentioned . Because the selling vastly outweighs the buying, we'd say this is a somewhat bearish sign.

Insider Ownership Of Assured Guaranty

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. We usually like to see fairly high levels of insider ownership. Assured Guaranty insiders own about US$150m worth of shares (which is 4.7% of the company). 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 Assured Guaranty Insiders?

Unfortunately, there has been more insider selling of Assured Guaranty stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. But since Assured Guaranty is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that Assured Guaranty is showing 4 warning signs in our investment analysis, and 2 of those are a bit unpleasant...

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.