Some Erie Indemnity Company (NASDAQ:ERIE) shareholders may be a little concerned to see that the Non-Independent Director, John Borneman, recently sold a substantial US$4.1m worth of stock at a price of US$407 per share. That's a big disposal, and it decreased their holding size by 50%, which is notable but not too bad.
Erie Indemnity Insider Transactions Over The Last Year
Notably, that recent sale by John Borneman is the biggest insider sale of Erie Indemnity shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$404. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
Erie Indemnity insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Does Erie Indemnity Boast High 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. We usually like to see fairly high levels of insider ownership. It's great to see that Erie Indemnity insiders own 41% of the company, worth about US$8.7b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Erie Indemnity Tell Us?
An insider sold Erie Indemnity shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But since Erie Indemnity is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 1 warning sign for Erie Indemnity you should know about.
But note: Erie Indemnity 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 of direct interests only, but not derivative transactions or indirect interests.
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.
