Yahoo Finance Insiders of RenaissanceRe Holdings Ltd. (NYSE:RNR) reaped rewards after their US$4.4m investment jumped another US$642k
RenaissanceRe Holdings Ltd. (NYSE:RNR) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 6.4% resulting in a US$457m addition to the company’s market value. As a result, the stock they originally bought for US$4.4m is now worth US$5.0m.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for RenaissanceRe Holdings
The Last 12 Months Of Insider Transactions At RenaissanceRe Holdings
Over the last year, we can see that the biggest insider purchase was by President Kevin O'Donnell for US$2.2m worth of shares, at about US$146 per share. We do like to see buying, but this purchase was made at well below the current price of US$165. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Happily, we note that in the last year insiders paid US$4.4m for 30.24k shares. But they sold 1.30k shares for US$201k. In total, RenaissanceRe Holdings insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
RenaissanceRe Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders at RenaissanceRe Holdings Have Bought Stock Recently
There has been significantly more insider buying, than selling, at RenaissanceRe Holdings, over the last three months. In total, five insiders bought US$4.4m worth of shares in that time. On the other hand, Independent Director Henry Klehm netted US$201k by selling. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.
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. A high insider ownership often makes company leadership more mindful of shareholder interests. RenaissanceRe Holdings insiders own 1.8% of the company, currently worth about US$133m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The RenaissanceRe Holdings Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about RenaissanceRe Holdings. Looks promising! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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.
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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.
