New Zealand markets open in 1 hour 33 minutes
  • NZX 50

    12,197.15
    +44.95 (+0.37%)
     
  • NZD/USD

    0.6307
    -0.0022 (-0.35%)
     
  • ALL ORDS

    7,745.90
    -25.90 (-0.33%)
     
  • OIL

    74.08
    +0.69 (+0.94%)
     
  • GOLD

    1,884.00
    +7.40 (+0.39%)
     

Insiders at The Progressive Corporation (NYSE:PGR) sold US$3.7m worth of stock, possibly indicating weakness in the future

The fact that multiple The Progressive Corporation (NYSE:PGR) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, if numerous insiders are selling, shareholders should investigate more.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Progressive

Progressive Insider Transactions Over The Last Year

The President of Personal Lines, Patrick Callahan, made the biggest insider sale in the last 12 months. That single transaction was for US$2.4m worth of shares at a price of US$126 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$131. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 59% of Patrick Callahan's stake.

Insiders in Progressive 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. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
insider-trading-volume

I will like Progressive better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insiders At Progressive Have Sold Stock Recently

The last quarter saw substantial insider selling of Progressive shares. In total, President of Personal Lines Patrick Callahan sold US$2.4m 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.

Insider Ownership

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. Progressive insiders own 0.3% of the company, currently worth about US$240m based on the recent share price. 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 Progressive Tell Us?

An insider hasn't bought Progressive stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for Progressive you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here