Investors interested in Global Indemnity Group, LLC (NYSE:GBLI) should certainly note that Chief Executive David Charlton recently paid $25.24 per share to buy $126,000 worth of stock. However, it only increased shareholding by a small percentage, and it wasn’t a huge buy in absolute terms either.
Discover our latest analysis for Global Indemnity Group
Global Indemnity Group insider trades over the past year
Over the past year, we can see that the largest insider buy was made by independent director Joseph Brown for US$542,000 of stock, at around US$27.25 per share. Clearly, an insider wanted to buy, even at a price higher than the current stock price (ie US$25.60). Their perspective may have changed since then, but it at least shows that they were feeling optimistic at the time. We always take careful note of the price paid by insiders when buying stocks. Generally speaking, it comes to our attention when insiders have bought stocks at higher prices than they are now, as it suggests that they thought the stock was worth buying, even at a higher price.
Over the past twelve months, Global Indemnity Group insiders have bought shares, but not sold. The chart below shows insider trading (by companies and individuals) over the past year. By clicking on the graph below, you will be able to see the precise detail of each insider trade!
There are many other companies whose insiders buy shares. You probably do not want to miss this free list of growing companies insiders are buying.
Another way to test alignment between a company’s executives and other shareholders is to look at how many shares they own. High insider participation often makes company management more concerned with the interests of shareholders. It appears that Global Indemnity Group insiders own 3.8% of the company, worth around $14 million. This level of insider ownership is good, but just short of being particularly noteworthy. This certainly suggests a reasonable degree of alignment.
What could insider trading at Global Indemnity Group tell us?
It is certainly positive to see the recent insider buying. And an analysis of last year’s transactions also gives us confidence. But on the other hand, the company has made a loss in the last year, which makes us a bit cautious. Insiders likely see value in Global Indemnity Group stock, given these transactions (as well as notable insider ownership of the company). So these insider trades can help us build a thesis on the stock, but it’s also helpful to know the risks this company faces. Our analysis shows 2 warning signs for Global Indemnity Group (1 is a little nasty!) and we strongly recommend that you consult them before investing.
But note: Global Indemnity Group may not be the best stock to buy. So take a look at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.
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