Hamilton Insurance Group, Ltd. (NYSE:HG) shareholders might have a reason to worry after multiple insiders sold their shares over the last year. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

The Last 12 Months Of Insider Transactions At Hamilton Insurance Group

Over the last year, we can see that the biggest insider sale was by the Independent Director, William Freda, for US$446k worth of shares, at about US$15.00 per share. That means that even when the share price was below the current price of US$16.65, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 10% of William Freda's holding.

Happily, we note that in the last year insiders paid US$756k for 47.80k shares. On the other hand they divested 99.00k shares, for US$1.5m. Over the last year we saw more insider selling of Hamilton Insurance Group shares, than buying. 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!

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Insiders At Hamilton Insurance Group Have Sold Stock Recently

Over the last three months, we've seen a bit of insider selling at Hamilton Insurance Group. Group Chief Accounting Officer Brian Deegan sold US$367k worth of shares in that time. But US$352k was spent on buying, too, . While it's not great to see insider selling, the net amount sold isn't enough for us to want to read anything into it.

Does Hamilton Insurance Group Boast High Insider Ownership?

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. It appears that Hamilton Insurance Group insiders own 2.4% of the company, worth about US$45m. 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 Hamilton Insurance Group Insider Transactions Indicate?

Insider selling has just outweighed insider buying in the last three months. But the difference is small, and thus, not concerning. We're a little cautious about the insider selling at Hamilton Insurance Group. 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 Hamilton Insurance Group. For example - Hamilton Insurance Group has 1 warning sign we think you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com