We wouldn't blame Unum Group (NYSE:UNM) shareholders if they were a little worried about the fact that Elizabeth A. Ahmed, the Executive Vice President of People & Communications recently netted about US$962k selling shares at an average price of US$80.14. That sale reduced their total holding by 30% which is hardly insignificant, but far from the worst we've seen.

Unum Group Insider Transactions Over The Last Year

Notably, that recent sale by Elizabeth A. Ahmed is the biggest insider sale of Unum Group shares that we've seen in the last year. That means that an insider was selling shares at below the current price (US$80.32). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 30% of Elizabeth A. Ahmed's holding.

Insiders in Unum Group didn't buy any shares in the last year. 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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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. I reckon it's a good sign if insiders own a significant number of shares in the company. Unum Group insiders own 0.9% of the company, currently worth about US$120m 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.

What Might The Insider Transactions At Unum Group Tell Us?

Insiders haven't bought Unum Group stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. 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. While conducting our analysis, we found that Unum Group has 2 warning signs and it would be unwise to ignore these.

Of course Unum Group 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 of direct interests only, but not derivative transactions or indirect interests.

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.