From what we can see, insiders were net sellers in RLI Corp.'s (NYSE:RLI ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for RLI
The Last 12 Months Of Insider Transactions At RLI
Over the last year, we can see that the biggest insider sale was by the Independent Director, Michael Stone, for US$619k worth of shares, at about US$146 per share. So what is clear is that an insider saw fit to sell at around the current price of US$136. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign. The only individual insider seller over the last year was Michael Stone.
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!
I will like RLI better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does RLI Boast High Insider Ownership?
Many investors like to check how much of a company is owned by 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. RLI insiders own about US$240m worth of shares (which is 3.9% 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 RLI Insiders?
It doesn't really mean much that no insider has traded RLI shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the RLI insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing RLI. Every company has risks, and we've spotted 3 warning signs for RLI (of which 1 is concerning!) you should know about.
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 of direct interests only, but not derivative transactions or indirect interests.
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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.