Many Reinsurance Group of America, Incorporated (NYSE:RGA) insiders ditched their stock over the past year, which may be of interest to the company's shareholders.   Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations.  However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.    

Although we don't think shareholders should simply follow insider transactions,  we would consider it foolish to ignore insider transactions altogether.

The Last 12 Months Of Insider Transactions At Reinsurance Group of America

Over the last year, we can see that the biggest insider sale was by the Executive VP, William Hutton, for US$786k worth of shares, at about US$150 per share.    So it's clear an insider wanted to take some cash off the table, even below the current price of US$194.  As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation.  While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign.   It is worth noting that this sale was only 27% of William Hutton's holding.    

All up, insiders sold more shares in Reinsurance Group of America than they bought, over the last year.    The chart below shows insider transactions (by companies and individuals) over the last year.  If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NYSE:RGA Insider Trading Volume April 8th 2024

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insiders At Reinsurance Group of America Have Sold Stock Recently  

The last three months saw significant insider selling at Reinsurance Group of America.  In total,  insiders  sold US$1.0m worth of shares in that time, and we didn't record any purchases whatsoever.  Overall this makes us a bit cautious, but it's not the be all and end all.  

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own.  I reckon it's a good sign if insiders own a significant number of shares in the company.   It appears that Reinsurance Group of America insiders own 0.5% of the company, worth about US$59m.  This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.  

What Might The Insider Transactions At Reinsurance Group of America Tell Us?

Insiders  sold Reinsurance Group of America shares recently, but they didn't buy any.     Despite some insider buying, the longer term picture doesn't make us feel much more positive.    On the plus side, Reinsurance Group of America makes money, and is growing profits.    Insider ownership isn't particularly high, so this analysis makes us cautious about the company.  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.    You'd be interested to know, that we found 1 warning sign for Reinsurance Group of America and we suggest you have a look.  

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.