When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in AXIS Capital Holdings Limited's (NYSE:AXS) instance, it's good news for shareholders.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At AXIS Capital Holdings
The Independent Director Stanley Galanski made the biggest insider purchase in the last 12 months. That single transaction was for US$409k worth of shares at a price of US$58.45 each. We do like to see buying, but this purchase was made at well below the current price of US$70.80. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Over the last year, we can see that insiders have bought 11.43k shares worth US$711k. On the other hand they divested 6.00k shares, for US$333k. Overall, AXIS Capital Holdings insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
AXIS Capital Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insiders At AXIS Capital Holdings Have Bought Stock Recently
It's good to see that AXIS Capital Holdings insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought US$301k worth of shares. This could be interpreted as suggesting a positive outlook.
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. Insiders own 0.6% of AXIS Capital Holdings shares, worth about US$33m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About AXIS Capital Holdings Insiders?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in AXIS Capital Holdings shares, given these transactions (along with notable insider ownership of the company). Of course, the future is what matters most. So if you are interested in AXIS Capital Holdings, you should check out this free report on analyst forecasts for the company.
But note: AXIS Capital Holdings 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.
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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.