Investors who take an interest in United Fire Group, Inc. (NASDAQ:UFCS) should definitely note that the Independent Director, George Milligan, recently paid US$45.23 per share to buy US$204k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 5.3%.

The Last 12 Months Of Insider Transactions At United Fire Group

In fact, the recent purchase by George Milligan was the biggest purchase of United Fire Group shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of US$47.74. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the United Fire Group insiders decided to buy shares at close to current prices.

In the last twelve months insiders purchased 5.00k shares for US$218k. But they sold 2.45k shares for US$79k. Overall, United Fire Group 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!

United Fire Group is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of United Fire Group

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It's great to see that United Fire Group insiders own 14% of the company, worth about US$161m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About United Fire Group Insiders?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about United Fire Group. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing United Fire Group. At Simply Wall St, we've found that United Fire Group has 2 warning signs (1 is potentially serious!) that deserve your attention before going any further with your analysis.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.