Don't Ignore The Insider Selling In Primerica

Some Primerica, Inc. (NYSE:PRI) shareholders may be a little concerned to see that the CEO & Director, Glenn Williams, recently sold a substantial US$641k worth of stock at a price of US$256 per share. However, that sale only accounted for 8.4% of their holding, so arguably it doesn't say much about their conviction.

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Primerica Insider Transactions Over The Last Year

Notably, that recent sale by CEO & Director Glenn Williams was not the only time they sold Primerica shares this year. Earlier in the year, they fetched US$262 per share in a -US$656k sale. So what is clear is that an insider saw fit to sell at around the current price of US$260. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Insiders in Primerica didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Primerica

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of Primerica

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.5% of Primerica shares, worth about US$40m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Primerica Tell Us?

Insiders haven't bought Primerica stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. On the plus side, Primerica makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! 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. Every company has risks, and we've spotted 2 warning signs for Primerica you should know about.

But note: Primerica 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.