Yahoo Finance Had insiders known QBE Insurance Group Limited (ASX:QBE) would hit AU$21b they might have invested more last year
QBE Insurance Group Limited (ASX:QBE) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 8.8% resulting in a AU$1.7b addition to the company’s market value. As a result, their original purchase of US$671k worth of stock is now worth US$827k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for QBE Insurance Group
The Last 12 Months Of Insider Transactions At QBE Insurance Group
Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Director Yasmin Allen for AU$220k worth of shares, at about AU$12.02 per share. We do like to see buying, but this purchase was made at well below the current price of AU$14.39. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While QBE Insurance Group insiders bought shares during the last year, they didn't sell. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does QBE Insurance Group Boast High Insider Ownership?
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. Insiders own 0.1% of QBE Insurance Group shares, worth about AU$24m. 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 Do The QBE Insurance Group Insider Transactions Indicate?
It doesn't really mean much that no insider has traded QBE Insurance Group shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think QBE Insurance Group insiders are doubting the company, and they do own shares. 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 - QBE Insurance Group has 1 warning sign 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, 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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