Some Arthur J. Gallagher & Co. (NYSE:AJG) shareholders may be a little concerned to see that the Corporate VP & CFO, Douglas Howell, recently sold a substantial US$2.5m worth of stock at a price of US$247 per share. However, that sale only accounted for 7.6% of their holding, so arguably it doesn't say much about their conviction.
See our latest analysis for Arthur J. Gallagher
The Last 12 Months Of Insider Transactions At Arthur J. Gallagher
In the last twelve months, the biggest single sale by an insider was when the Corporate VP & Chief Human Resource Officer, Susan Pietrucha, sold US$5.2m worth of shares at a price of US$212 per share. That means that an insider was selling shares at slightly below the current price (US$251). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was 99% of Susan Pietrucha's holding.
In the last year Arthur J. Gallagher insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Arthur J. Gallagher better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Arthur J. Gallagher insiders own 1.2% of the company, worth about US$619m. 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 Arthur J. Gallagher Insider Transactions Indicate?
Insiders sold Arthur J. Gallagher shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But since Arthur J. Gallagher is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 3 warning signs with Arthur J. Gallagher and understanding them should be part of your investment process.
But note: Arthur J. Gallagher 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 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.