Some CNA Financial Corporation (NYSE:CNA) shareholders may be a little concerned to see that the Executive VP & Chief Administrative Officer, Daniel Franzetti, recently sold a substantial US$1.0m worth of stock at a price of US$44.78 per share. That's a big disposal, and it decreased their holding size by 27%, which is notable but not too bad.
CNA Financial Insider Transactions Over The Last Year
The Executive VP & Global Head of Underwriting, Douglas Worman, made the biggest insider sale in the last 12 months. That single transaction was for US$1.1m worth of shares at a price of US$40.08 each. That means that an insider was selling shares at slightly below the current price (US$44.81). 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 20% of Douglas Worman's holding.
CNA Financial insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of CNA Financial
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.6% of CNA Financial shares, worth about US$78m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About CNA Financial Insiders?
An insider hasn't bought CNA 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. But since CNA Financial is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - CNA Financial has 2 warning signs we think you should be aware of.
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.
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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.