Recent insider selling at Assured Guaranty raises caution, with no insider purchases in the past year. Despite profitability and growth, the absence of insider buying is concerning. High insider ownership, however, aligns management's interests with shareholders.
Assured Guaranty Ltd.'s low P/E ratio is due to expected earnings slump. Investors see no significant potential for earnings improvement to justify a higher P/E ratio. These conditions form a barrier for the share price.
Despite recent insider selling at Assured Guaranty, the high insider ownership rate aligns managers' with shareholders' interests. Yet, the absence of insider purchases raises caution. This could suggest a fair valuation at current levels and a lack of confidence in the near-term price appreciation potential.
The market's positive perception of the business is indicated by the 34% per year increase in the share price outpacing EPS growth. Recent share price return and a 5-year TSR of 11% per year imply potential worthiness for long-term monitoring.
Assured Guaranty Stock Forum
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Chart1: $Assured Guaranty (AGO.US)$
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