Senior EVP & Chief Digital Officer Eric Ray Sold A Bunch Of Shares In Radian Group

We wouldn't blame Radian Group Inc. (NYSE:RDN) shareholders if they were a little worried about the fact that Eric Ray, the Senior EVP & Chief Digital Officer recently netted about US$999k selling shares at an average price of US$33.30. That diminished their holding by a very significant 68%, which arguably implies a strong desire to reallocate capital.

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The Last 12 Months Of Insider Transactions At Radian Group

In fact, the recent sale by Senior EVP & Chief Digital Officer Eric Ray was not their only sale of Radian Group shares this year. They previously made an even bigger sale of -US$1.9m worth of shares at a price of US$35.67 per share. That means that an insider was selling shares at around the current price of US$34.27. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Insiders in Radian Group didn't buy any shares in 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!

View our latest analysis for Radian Group

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Does Radian Group Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Radian Group insiders own 1.3% of the company, worth about US$61m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Radian Group Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. But since Radian Group is profitable and growing, we're not too worried by this. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Radian Group has 5 warning signs (3 are significant!) that deserve your attention before going any further with your analysis.

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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.

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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.