We wouldn't blame NMI Holdings, Inc. (NASDAQ:NMIH) shareholders if they were a little worried about the fact that James Jones, the Independent Director recently netted about US$1.7m selling shares at an average price of US$30.16. That's a big disposal, and it decreased their holding size by 34%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At NMI Holdings
In fact, the recent sale by James Jones was the biggest sale of NMI Holdings shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$30.05. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
In the last year NMI Holdings insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like NMI Holdings 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 Of NMI Holdings
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. We usually like to see fairly high levels of insider ownership. It appears that NMI Holdings insiders own 1.6% of the company, worth about US$40m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At NMI Holdings Tell Us?
Insiders haven't bought NMI Holdings stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But since NMI Holdings is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 1 warning sign for NMI Holdings you should know about.
Of course NMI Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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.