When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Markel Corporation's (NYSE:MKL) instance, it's good news for shareholders.
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.
The Last 12 Months Of Insider Transactions At Markel
The Director Anthony Markel made the biggest insider purchase in the last 12 months. That single transaction was for US$104k worth of shares at a price of US$1,305 each. That means that an insider was happy to buy shares at above the current price of US$1,084. Their view may have changed since then, but at least it shows they felt optimistic at the time. 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 Anthony Markel was both the biggest buyer and the biggest seller.
In the last twelve months insiders purchased 450.00 shares for US$565k. But they sold 65.00 shares for US$82k. Overall, Markel insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Markel is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At Markel Have Bought Stock Recently
It's good to see that Markel insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought US$261k worth of shares. This is a positive in our book as it implies some confidence.
Insider Ownership Of Markel
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Markel insiders own 2.1% of the company, currently worth about US$305m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Markel Insiders?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Markel. Nice! While we like knowing 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. You'd be interested to know, that we found 1 warning sign for Markel and we suggest you have a look.
Of course Markel may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
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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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