In the last year, multiple insiders have substantially increased their holdings of Conifer Holdings, Inc. (NASDAQ:CNFR) stock, indicating that insiders’ optimism about the company’s prospects has increased.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Conifer Holdings Insider Transactions Over The Last Year
The Executive Chairman & Co-CEO James Petcoff made the biggest insider purchase in the last 12 months. That single transaction was for US$1.5m worth of shares at a price of US$2.00 each. That means that an insider was happy to buy shares at above the current price of US$1.67. 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 always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. We note that James Petcoff was both the biggest buyer and the biggest seller.
Over the last year, we can see that insiders have bought 1.00m shares worth US$2.0m. But they sold 200.00k shares for US$300k. In the last twelve months there was more buying than selling by Conifer Holdings insiders. 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!
Conifer Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At Conifer Holdings Have Sold Stock Recently
The last three months saw significant insider selling at Conifer Holdings. In total, Executive Chairman & Co-CEO James Petcoff dumped US$300k worth of shares in that time, and we didn’t record any purchases whatsoever. In light of this it’s hard to argue that all the insiders think that the shares are a bargain.
Does Conifer Holdings Boast High Insider Ownership?
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 Conifer Holdings insiders own 40% of the company, worth about US$8.3m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Conifer Holdings Tell Us?
An insider sold stock recently, but they haven’t been buying. In contrast, they appear keener if you look at the last twelve months. On top of that, insiders own a significant portion of the company. So we’re not too bothered by recent selling. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Conifer Holdings has 4 warning signs and it would be unwise to ignore them.
But note: Conifer Holdings 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, but not derivative transactions.
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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.
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