Some Selective Insurance Group, Inc. (NASDAQ:SIGI) shareholders may be a little concerned to see that the Executive VP, Michael Lanza, recently sold a substantial US$1.6m worth of stock at a price of US$94.04 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 51% of their entire holding.

Selective Insurance Group Insider Transactions Over The Last Year

Notably, that recent sale by Michael Lanza is the biggest insider sale of Selective Insurance Group shares that we've seen in the last year. That means that even when the share price was slightly below the current price of US$94.66, 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. It is worth noting that this sale was 51% of Michael Lanza's holding.

In the last twelve months insiders purchased 4.80k shares for US$372k. But insiders sold 19.12k shares worth US$1.8m. In total, Selective Insurance Group insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Selective Insurance Group better if I see some big insider buys.

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 Selective Insurance Group insiders own 0.9% of the company, worth about US$51m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Selective Insurance Group Tell Us?

An insider hasn't bought Selective Insurance Group stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, Selective Insurance Group makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - Selective Insurance Group has 1 warning sign we think you should be aware of.

But note: Selective Insurance Group 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.

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.