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Bullish insiders bet US$4.4m on RenaissanceRe Holdings Ltd. (NYSE:RNR)

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·3-min read
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Quite a few insiders have dramatically grown their holdings in RenaissanceRe Holdings Ltd. (NYSE:RNR) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.

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

See our latest analysis for RenaissanceRe Holdings

RenaissanceRe Holdings Insider Transactions Over The Last Year

The President Kevin O'Donnell made the biggest insider purchase in the last 12 months. That single transaction was for US$2.2m worth of shares at a price of US$146 each. So it's clear an insider wanted to buy, at around the current price, which is US$149. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the RenaissanceRe Holdings insiders decided to buy shares at close to current prices.

In the last twelve months insiders purchased 30.24k shares for US$4.4m. On the other hand they divested 1.90k shares, for US$290k. Overall, RenaissanceRe Holdings insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
insider-trading-volume

RenaissanceRe Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

RenaissanceRe Holdings Insiders Are Selling The Stock

Over the last three months, we've seen significant insider selling at RenaissanceRe Holdings. In total, Independent Director David Bushnell sold US$89k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. RenaissanceRe Holdings insiders own about US$97m worth of shares. That equates to 1.5% of the company. 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 RenaissanceRe Holdings Tell Us?

An insider sold RenaissanceRe Holdings shares recently, but they didn't buy any. But we take heart from prior transactions. We like that insiders own a fair amount of the company. So the recent selling doesn't worry us too much. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 1 warning sign for RenaissanceRe Holdings you should know about.

Of course RenaissanceRe 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, but not derivative transactions.

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.

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