Some Loews Corporation (NYSE:L) shareholders may be a little concerned to see that the Co-Chairman of the Board, Andrew Tisch, recently sold a substantial US$18m worth of stock at a price of US$73.17 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 1.8%.
The Last 12 Months Of Insider Transactions At Loews
Over the last year, we can see that the biggest insider purchase was by Senior VP of Corporate Development & Strategy Benjamin Tisch for US$19m worth of shares, at about US$57.88 per share. Even though the purchase was made at a significantly lower price than the recent price (US$74.34), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In the last twelve months insiders purchased 345.87k shares for US$20m. But insiders sold 463.70k shares worth US$33m. Over the last year we saw more insider selling of Loews shares, than buying. 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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Does Loews Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Loews insiders own 11% of the company, currently worth about US$1.8b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Loews Insider Transactions Indicate?
Insiders sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, Loews makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Loews. For example - Loews has 1 warning sign we think you should be aware of.
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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.