American International Group, Inc. (NYSE:AIG) insiders who sold US$918k worth of stock earlier this year are probably glad they did so as market cap slides to US$35b
Insiders seem to have made the most of their holdings by selling US$918k worth of American International Group, Inc. (NYSE:AIG) stock at an average sell price of US$54.01 during the past year. The company's market valuation decreased by US$2.2b after the stock price dropped 6.0% over the past week, but insiders were spared from painful losses.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for American International Group
American International Group Insider Transactions Over The Last Year
The Executive VP, Luciana Fato, made the biggest insider sale in the last 12 months. That single transaction was for US$918k worth of shares at a price of US$54.01 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$47.16). So it may not shed much light on insider confidence at current levels. Luciana Fato was the only individual insider to sell shares in the last twelve months.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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 American International Group
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 0.2% of American International Group shares, worth about US$73m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At American International Group Tell Us?
The fact that there have been no American International Group insider transactions recently certainly doesn't bother us. Still, the insider transactions at American International Group in the last 12 months are not very heartening. The modest level of insider ownership is, at least, some comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing American International Group. Case in point: We've spotted 1 warning sign for American International Group you should be aware of.
But note: American International Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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, but not derivative transactions.
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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.
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