We wouldn't blame Genworth Financial, Inc. (NYSE:GNW) shareholders if they were a little worried about the fact that Thomas McInerney, the President recently netted about US$1.2m selling shares at an average price of US$6.18. However, that sale only accounted for 4.5% of their holding, so arguably it doesn't say much about their conviction.
View our latest analysis for Genworth Financial
The Last 12 Months Of Insider Transactions At Genworth Financial
The insider, Daniel Sheehan, made the biggest insider sale in the last 12 months. That single transaction was for US$2.2m worth of shares at a price of US$6.25 each. That means that an insider was selling shares at around the current price of US$6.11. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Insiders in Genworth Financial didn't buy any shares in 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!
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Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company 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. Insiders own 1.6% of Genworth Financial shares, worth about US$44m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Genworth Financial Insider Transactions Indicate?
An insider hasn't bought Genworth Financial 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. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Genworth Financial. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Genworth Financial.
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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.