Have Insiders Sold American Financial Group Shares Recently?

We wouldn't blame American Financial Group, Inc. (NYSE:AFG) shareholders if they were a little worried about the fact that Stephen Lindner, the Co-CEO & Director recently netted about US$1.3m selling shares at an average price of US$134. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 0.2%.

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The Last 12 Months Of Insider Transactions At American Financial Group

Notably, that recent sale by Stephen Lindner is the biggest insider sale of American Financial Group shares that we've seen in the last year. That means that an insider was selling shares at below the current price (US$135). 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 0.2% of Stephen Lindner's holding.

Over the last year we saw more insider selling of American Financial Group shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for American Financial Group

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Does American Financial Group Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. American Financial Group insiders own about US$1.9b worth of shares (which is 17% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About American Financial Group Insiders?

An insider sold American Financial Group shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing American Financial Group. While conducting our analysis, we found that American Financial Group has 2 warning signs and it would be unwise to ignore these.

But note: American Financial 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.

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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.