Insiders at SEI Investments Company (NASDAQ:SEIC) sold US$8.1m worth of stock at an average price of US$61.16 a share over the past year, making the most of their investment. The company's market worth decreased by US$286m over the past week after the stock price dropped 3.8%, although insiders were able to minimize their losses

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for SEI Investments

The Last 12 Months Of Insider Transactions At SEI Investments

Over the last year, we can see that the biggest insider sale was by the Executive Chairman, Alfred West, for US$8.1m worth of shares, at about US$61.65 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$53.41). So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Alfred West.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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 Of SEI Investments

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. SEI Investments insiders own about US$1.3b worth of shares (which is 18% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The SEI Investments Insider Transactions Indicate?

The fact that there have been no SEI Investments insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of SEI Investments, we can't say the same about the selling of shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing SEI Investments. You'd be interested to know, that we found 1 warning sign for SEI Investments and we suggest you have a look.

But note: SEI Investments may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, 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.